Should we keep a close eye on the euro’s movements, which are rising against the yen despite the decline in the Eurozone CPI?

Should we keep a close eye on the euro’s movements, which are rising against the yen despite the decline in the Eurozone CPI?

01.08.2023

In the previous day’s U.S. currency trading, the Canadian dollar rose against the yen. As cross-yen pairs generally rose on the final day of July, the CAD/JPY pair followed suit, moving in a yen-weakening trend. The CAD/JPY pair rose from 106.183 to 108.095. On the hourly chart, the 20-day moving average (MA) provided support at the lower end, establishing an upward trend. We will be closely monitoring the strength of the Canadian dollar to see if this trend continues into European trading hours.

Despite the final reading of the Eurozone’s July Harmonized Index of Consumer Prices (HICP), released yesterday, falling to 5.3% year-on-year from the previous reading of 5.5%, the euro rose against the yen.The EUR/JPY pair rose from 155.123 to 157.268. The upward trend was supported by the 20-period moving average (MA) on the hourly chart. From a technical perspective, the EUR/JPY has broken above the 200-period simple moving average (SMA) on the 4-hour chart with a real body candle, and the 4-hour RSI is rising from below 30 toward 70. We will monitor whether the euro continues to strengthen during European trading hours.

Today’s schedule includes UK Nationwide house prices at 3:00 PM, Turkey’s Manufacturing PMI at 4:00 PM, France’s Manufacturing PMI at 4:50 PM, Germany’s unemployment rate and Manufacturing PMI at 4:55 PM, the Eurozone Manufacturing PMI at 5:00 PM, the UK Manufacturing PMI at 5:30 PM, and the Eurozoneunemployment rate, South Africa’s Manufacturing PMI at 18:00, the US Manufacturing PMI at 22:45, the US ISM Manufacturing Index at 23:00, US JOLTS Job Openings, US Construction Spending, and remarks by US Federal Reserve Bank of Chicago President Goolsbee. We will closely monitor the euro’s movements against the yen, as it continues to rise despite the decline in the Eurozone CPI.

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