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

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

12.07.2023

In yesterday's U.S. currency trading, the U.S. dollar fell against the euro. The EUR/USD pair rose from 1.0976 to 1.1026, forming an uptrend along the 10-period moving average (MA) on the 4-hour chart. On the higher-timeframe daily chart, the pair rebounded and rose, supported by the 75-period MA.Since the recent high of around 1.1094 serves as the next resistance level for the EUR/USD pair, we will monitor whether the rally continues to that level while keeping an eye on today’s economic data releases.

Among European currencies, the euro fell by about 1.5 yen against the yen. The euro/yen pair dropped from 155.676 to 154.174.The downward trend continued during today’s Asian session, with the pair touching 153.722. It has fallen below the daily 20-day moving average (MA) for two consecutive days. However, since the euro/yen pair had risen more sharply than other yen crosses, it remains above the weekly 10-day MA. Consequently, the decline could be more significant if the yen strengthens further, so caution is advised ahead of economic data releases during European trading hours.

Today’s schedule includes the release of the Bank of England’s Financial Stability Report at 3:00 PM, remarks by Bank of England Governor Bailey at 5:00 PM, the U.S. MBA Mortgage Applications Index at 8:00 PM, the U.S. Consumer Price Index at 9:30 PM, remarks by U.S. Federal Reserve Bank of Richmond President Barkin, and remarks by U.S. Federal Reserve Bank of Minneapolis President Kashkari at 10:45 PM.Minneapolis Fed President, at 11:00 PM the Bank of Canada (BOC) policy rate and statement, at 11:30 PM U.S. weekly crude oil inventories, at 12:00 AM remarks by Bank of Canada (BOC) Governor Macklem, at 2:00 AM the U.S. 10-year Treasury auction and remarks by Atlanta Fed President Bostic, and at 3:00 AM the U.S. Beige Book.We intend to cautiously monitor the upside potential of the euro, which is rising against the US dollar.