Market participants are keeping a close eye on the euro-dollar exchange rate, which failed to sustain its rebound and has slipped back into a downtrend.

Market participants are keeping a close eye on the euro-dollar exchange rate, which failed to sustain its rebound and has slipped back into a downtrend.

02.10.2023

Last weekend, the Canadian dollar became the weakest currency in the U.S. market after Canada’s July GDP, released on September 29, came in at 0.0% month-over-month—below the market forecast of 0.2%. The CAD/JPY pair plummeted after hitting a new year-to-date high of 111.167.It fell by approximately 120 pips to 1019.940. Due to last weekend’s decline, the CAD/JPY pair has broken below its 10-day moving average. We will closely monitor the direction of the CAD/JPY pair at the start of the month.

European currencies saw the euro face resistance during U.S. trading hours after the final reading of the Eurozone’s September Harmonized Index of Consumer Prices (HICP) fell to 4.3% year-over-year from the previous reading of 5.2%. Although the euro/dollar pair rebounded during Asian trading hours, it lost momentum during U.S. trading hours, falling back from 1.0616 to 1.0564.Technically, while the pair has returned above the 20-period moving average (MA) on the 4-hour chart, it continues to trade below the 20-period MA on the daily chart. Therefore, traders should watch to see if the downward trend in the EUR/USD pair will continue.

Today’s schedule includes the UK Nationwide House Price Index at 3:00 PM, Swiss Retail Sales at 3:30 PM, Turkey Manufacturing PMI at 4:00 PM, France Manufacturing PMI at 4:50 PM, Germany Manufacturing PMI at 4:55 PM, Eurozone Manufacturing PMI at 5:00 PM, UK Manufacturing PMI at 5:30 PM, and EurozoneEmployment Report, 22:45 US Manufacturing PMI, 23:00 US Construction Spending, US ISM Manufacturing Index, 24:00 Remarks by Fed Chair Powell, Remarks by Harker, President of the Philadelphia Fed, and 24:30 US 6-month Treasury bill auction.We will closely monitor the movement of the euro/dollar pair, which has failed to sustain its rebound and has slipped back into a downtrend.

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