Market participants are watching closely to see if the euro’s post-ECB weakness will continue

Market participants are watching closely to see if the euro’s post-ECB weakness will continue

28.07.2023

In the U.S. currency market yesterday, the U.S. dollar rose against the yen immediately after the release of the second-quarter U.S. GDP data, which showed a significant expansion from the previous reading of 2.0% to 2.4%.The USD/JPY pair surged from 139.373 to 141.320, breaking above the 20-period moving average on the 4-hour chart. However, reacting to a Nikkei article leaked early this morning regarding revisions to the YCC policy, the pair plummeted to 138.763. The market saw significant volatility.

Following yesterday’s announcement of the ECB’s policy rate decision, the central bank raised rates by 0.25% as expected by the market, triggering a “sell-the-fact” reaction that caused the euro to fall against both the yen and the U.S. dollar. The euro/yen pair fell from 156.187 to 152.194.The decline has continued during today’s Asian trading session, with the pair falling to 151.411. We will closely monitor the direction of the market to see if the euro’s decline continues into the U.S. trading session.

Today’s schedule includes France’s Q2 GDP at 14:30, a press conference by Bank of Japan Governor Ueda at 15:30, France’s Consumer Price Index and Producer Price Index at 15:45, Switzerland’s KOF Leading Index and Turkey’s trade balance at 16:00, Germany’s Consumer Price Index and South Africa’s fiscal balance at 21:00,at 9:30 PM, Canada’s GDP, U.S. personal income, U.S. PCE deflator, and U.S. Q2 Employment Cost Index; and at 11:00 PM, the U.S. University of Michigan Consumer Sentiment Index. We will carefully assess currency strength and weakness to determine whether the euro’s weakness following the ECB meeting will persist.

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