Markets are likely to keep a close eye on the euro’s movements following the decline in Germany’s PPI, which posted its lowest growth rate since January 2021

Markets are likely to keep a close eye on the euro’s movements following the decline in Germany’s PPI, which posted its lowest growth rate since January 2021

21.06.2023

In the U.S. currency market yesterday, the U.S. dollar rose against the euro after the U.S. May housing starts report, released yesterday, showed an increase from 1.41 million in the previous month to 1.49 million.The EUR/USD pair fell by just over 50 pips from 1.0946 to 1.0892. It briefly dipped below the 20-period moving average on the 4-hour chart. The EUR/USD is forming an ascending wedge on the daily chart, with both the upper and lower boundaries narrowing; therefore, we should remain vigilant regarding whether price volatility will increase during U.S. trading hours.

European currencies fell against the yen as Germany’s May Producer Price Index (PPI), released yesterday, dropped sharply year-over-year from the previous reading of 4.1% to 1.0%.EUR/JPY fell by approximately 130 pips from 155.379 to 154.040, breaking below the 75-period moving average (MA) on the hourly chart. On the higher-timeframe 4-hour chart, EUR/JPY found support at the 20-period MA, halting its decline. Since it avoided touching the 23.6% Fibonacci retracement level based on the recent low, attention will be focused on whether the euro recovers during European trading hours.

Today, at 3:00 PM: UK Consumer Price Index, UK Producer Price Index, UK Retail Price Index; at 4:00 PM: Turkey Capacity Utilization Rate; at 5:00 PM: South Africa Consumer Price Index; at 5:30 PM: Hong Kong Current Account Balance; at 8:00 PM: US MBA Mortgage Applications Index; at 9:30 PM: Canada Retail Sales;at 10:45 PM, remarks by German Bundesbank President Nagel; at 11:00 PM, congressional testimony by Fed Chair Powell, Fed Governor Cook, and Fed Governor Jefferson; and at 2:00 AM, a U.S. 20-year Treasury auction.We will closely monitor the euro’s movements following its decline on the back of Germany’s PPI, which showed the lowest growth since January 2021.

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