Should we keep a close eye on the direction of the euro, which has entered a technical recession?

Should we keep a close eye on the direction of the euro, which has entered a technical recession?

09.06.2023

In yesterday’s U.S. currency trading, the dollar fell against the yen after the number of new U.S. unemployment insurance claims rose to 261,000 from 232,000 the previous week. The USD/JPY pair fell from 140.212 to 138.758. Over the past week, the pair has continued to trade in a range straddling the 10-day moving average.USD/JPY is currently facing the 50% Fibonacci retracement level, which connects last year’s high and this year’s low, and price action is likely to remain directionless until next week’s FOMC meeting.

European currencies saw the euro trade in a narrow range against the yen after the euro entered a technical recession following the release of Q1 real GDP data yesterday, which showed a 0.1% quarter-on-quarter decline—marking the second consecutive quarter of contraction.EUR/JPY has been trading in a range between 149.592 and 150.051, and is testing the upside during today’s Asian session. If EUR/JPY extends higher, it will be worth watching whether it breaks through the recent high of 151.069.

Today, at 3:00 PM, Norway’s Consumer Price Index and Producer Price Index, Sweden’s Industrial Production, and Sweden’s New Manufacturing Orders will be released; at 4:00 PM, Turkey’s Industrial Production; and at 7:30 PM, Russia’skey interest rates, India’s foreign exchange reserves at 8:30 PM, Mexico’s industrial production at 9:00 PM, Canada’s employment statistics and capacity utilization at 9:30 PM, and Russia’s Consumer Price Index at 1:00 AM. We will be closely monitoring the direction of the euro, which has entered a technical recession.

Past Market Reports

1. 21.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

2. 20.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

3. 17.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

4. 16.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

5. 15.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

6. 14.04.2026

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

7. 13.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

8. 10.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

9. 09.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

10. 08.04.2026

    Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran