Should we keep an eye on the upside potential of the euro, now that it has become the strongest currency?

Should we keep an eye on the upside potential of the euro, now that it has become the strongest currency?

13.11.2023

Last weekend, the U.S. dollar weakened against the euro after the University of Michigan’s November Consumer Sentiment Index fell to 60.4 from 63.8 the previous month. GBP/USD fell from 1.2237 to 1.2186, finding support just below the 200-period SMA on the 4-hour chart.From a technical perspective, GBP/USD has been forming higher lows on the daily chart, and the daily RSI has rebounded after falling significantly below the oversold level of 30 to 19.1. Therefore, I intend to wait and see if the US dollar will weaken this week.

European currencies saw the euro emerge as the strongest currency during U.S. trading hours after ECB President Lagarde stated that “maintaining the policy rate in the 4% range will be sufficient to curb inflation” and that “we are prepared to raise rates again if necessary.”The EUR/JPY pair rose from 161.222 to 161.945, setting a new high. Since the EUR/JPY has touched the +3σ line of the Bollinger Bands on the weekly chart and the RSI has risen to 75 on the monthly chart, it will be worth watching whether the euro continues to trend upward.

Today, Germany’s trade balance is scheduled for 3:00 PM, Turkey’s current account balance for 4:00 PM, Hungary’s industrial production for 4:30 PM, the Czech Republic’s current account balance for 6:00 PM, Israel’s trade balance for 8:00 PM, India’s consumer price index for 9:00 PM, the Philippines’ current account balance for 10:00 PM,at 10:50 PM, remarks by Fed Governor Cook; at 1:30 AM, the U.S. 6-month Treasury bill auction; at 4:00 AM, the U.S. budget balance; and at 5:00 AM, South Korea’s import and export price inflation rates. I intend to closely monitor the upside potential of the euro, which has become the strongest currency.

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