Should we focus on the upside potential of the euro, which has risen against the U.S. dollar?

Should we focus on the upside potential of the euro, which has risen against the U.S. dollar?

31.07.2023

Last weekend, the U.S. dollar fell against the pound after the final reading of the University of Michigan’s July Consumer Sentiment Index, released on the 28th, was revised downward from the previous reading of 72.6 to 71.6, falling short of market expectations of 72.6. The GBP/USD pair rose by approximately 120 pips from 1.2762 to 1.2886.This prevented the pair from hitting a new low for the month. However, on the daily chart, GBP/USD remains below the 20-day moving average, and with the RSI trending downward, we should remain cautious of a downward bias until new highs or lows are established, based on Dow Theory.

Despite the fact that Germany’s July Consumer Price Index (CPI), released last weekend, fell to 6.2% year-on-year from 6.4% the previous month, the euro rose against the U.S. dollar.The EUR/USD pair rose by approximately 100 pips, from 1.0943 to 1.1046. The downtrend below the 20-period moving average (MA) on the hourly chart has paused, and the pair has rebounded back above the 20-MA. On the higher-timeframe weekly chart, the pair has pulled back after encountering resistance at the 200-period simple moving average (SMA), so we will be watching closely to see if this pullback continues this week.

Today’s schedule includes German retail sales and the German import price index at 3:00 PM, South African money supply at 3:30 PM, Swiss retail sales at 5:30 PM, UK consumer credit at 6:00 PM, Eurozone Q2 real GDP and the Eurozone consumer price index at 6:00 PM, and South African trade balance at 9:00 PM.Mexico’s Q2 real GDP, at 10:45 PM the US Chicago PMI, and at 11:30 PM the US Dallas Fed Manufacturing Activity Index. We will be watching for upside potential in the euro, which has risen against the US dollar.

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