Will the rising euro continue to climb on its own, or should we wait and see which direction it takes?

Will the rising euro continue to outperform, or should we wait and see which direction it takes?

20.10.2023

In the U.S. currency market yesterday, the dollar faced resistance as September existing home sales fell to 3.96 million from 4.04 million in the previous month, resulting in a lack of direction throughout the session.The EUR/USD pair rose from 1.0529 to 1.0616 but stalled just short of the 200-period SMA on the 4-hour chart. From a technical perspective, the EUR/USD is showing signs of higher lows on the daily chart, so we will be watching closely to see if the euro strengthens against the dollar over the weekend.

European currencies rose against the yen as the euro gained ground following yesterday’s release of the EU’s August current account balance, which improved to €27.7 billion from €20.9 billion the previous month.The euro/yen pair rose from 157.685 to 158.926. The daily 20-day moving average (MA) acted as support, triggering a rebound. Additionally, the daily 75-day MA is also functioning as a support line, so it will be worth watching whether the euro continues to rise against the yen this Friday.

Today’s schedule includes UK retail sales at 3:00 PM, Germany’s producer price index and Sweden’s unemployment rate at 3:35 PM, remarks by Bank of Japan Governor Ueda at 4:00 PM, Turkey’s consumer price index at 5:30 PM, Hong Kong’s consumer price index at 6:30 PM, India’s foreign exchange reserves at 8:30 PM, and Mexico’s retail sales at 9:00 PM,21:30: Canada Retail Sales; 22:00: U.S. – Remarks by Harker, President of the Philadelphia Fed; 23:30: Turkey Central Government Debt; 25:15: U.S. – Remarks by Mester, President of the Cleveland Fed. I’d like to wait and see whether the rising euro will continue to strengthen on its own.