With the ECB meeting just two days away, investors are wary of how much further the euro might fall

With the ECB meeting just two days away, investors are wary of how much further the euro might fall

25.07.2023

In the previous day’s U.S. currency trading, the U.S. dollar fell against the yen after the U.S. July PMI Purchasing Managers’ Index, released during U.S. trading hours, declined to 52.0 from 53.2 the previous month. The USD/JPY pair fell from 141.813 to 140.740.Although the pair had been trading above the 20-period moving average (MA) on the hourly chart, the decline caused it to fall below the 20-MA. However, as we are seeing an upward move during today’s Asian session, we will wait and see how the market moves during U.S. trading hours.

European currencies fell sharply against the yen after yesterday’s release of the Eurozone’s July PMI showed declines in both the services and manufacturing sectors compared to the previous month. The euro/yen pair dropped from 157.778 to 157.245, breaking well below the 20-period moving average (MA) on the 4-hour chart. As the euro/yen remains below the 20-period MA during today’s Asian trading session, we will be watching closely to see if the euro continues to weaken ahead of the ECB meeting scheduled for the day after tomorrow.

Today, during Asian trading hours, the Norwegian Mining Confidence Index will be released at 14:00 and the Swedish Producer Price Index at 15:00; during European trading hours, the Turkish Economic Sentiment Index and Turkish Capacity Utilization Rate will be released at 16:00, followed by the German IFO Business Climate Index and Philippine Unemployment Rate at 17:00; and at 19:00, the UKCBI Business Survey, and at 22:00 U.S. time, the U.S. S&P/Case-Shiller Home Price Index, the U.S. Consumer Confidence Index at 23:00, and the U.S. 5-year Treasury auction. With the ECB meeting just two days away, we should remain cautious about the downside potential for the euro, which is currently falling.

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