Attention is turning to the euro’s performance, as the impact of the decline in Germany’s PPI appears to have been limited

Attention is turning to the euro’s performance, as the impact of the decline in Germany’s PPI appears to have been limited

22.08.2023

In the U.S. currency market yesterday, with no major economic indicators released, the U.S. dollar rose against the yen. The USD/JPY pair climbed from 145.147 to 146.401, moving in line with the 20-period moving average (MA) on the hourly chart. From a technical perspective, since the USD/JPY has rebounded with the 20-period MA on the 4-hour chart acting as support, we should keep a close eye on the dollar’s price action to see if it will break above last week’s high of 146.564.

Despite the fact that Germany’s July Producer Price Index (PPI), released yesterday, fell sharply year-on-year from 0.1% the previous month to -6.0%, the euro rose against the U.S. dollar. The EUR/USD pair rose from 1.0866 at the start of the week to 1.0913. During today’s Asian trading session, it has climbed as high as 1.0916.With today’s rise, the EUR/USD pair has already reached its recent high on the 4-hour chart, so we should keep an eye on the euro’s strength.

Today’s economic indicators include Norway’s Q2 GDP and the UK’s public sector net debt at 3:00 PM, the Eurozone’s current account balance at 5:00 PM,Philippines: Retail Sales at 19:00, UK: CBI Business Survey at 20:30, US: Remarks by Barkin, President of the Richmond Fed, at 23:00, US: Existing Home Sales and US: Richmond Fed Manufacturing Index at 27:30, and US: Remarks by Goolsbee, President of the Chicago Fed, at 27:30.We will closely monitor the euro’s movements, as it has remained resilient despite a sharp deterioration in German PPI.

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