Market participants may be wary of further downside potential for the euro, even after ECB President Lagarde’s remarks

Market participants may be wary of further downside potential for the euro, even after ECB President Lagarde’s remarks

22.11.2023

In yesterday’s U.S. currency trading, the Canadian dollar rebounded against the yen after Canada’s October Consumer Price Index (CPI), released yesterday, showed a year-over-year decline of 0.7 percentage points from the previous month’s 3.8% to 3.1%. The CAD/JPY pair rose from 107.238 to 108.428, breaking above the 20-period moving average (MA) on the hourly chart with a bullish candle.From a technical perspective, the CAD/JPY pair formed a bullish candle with a lower wick just below the daily 75-day moving average (MA). On the weekly chart, it formed a bearish candle with a lower wick after falling below the 20-day MA. Therefore, we should keep an eye on the strength of the Canadian dollar during U.S. trading hours.

Despite ECB President Lagarde stating that "it is still too early to declare victory in the fight against inflation" and emphasizing the need to closely monitor developments, the euro weakened against the U.S. dollar. The EUR/USD pair fell from 1.0965 to 1.0899, halting just below the 20-period moving average on the 4-hour chart.The EUR/USD pair has continued its rebound since the start of the month, and as there is a possibility of a correction, we will be watching for directional cues during European trading hours.

Today’s schedule includes the Turkish Consumer Confidence Index at 4:00 PM, the South African Consumer Price Index at 5:00 PM, remarks by RBA Governor Block at 5:35 PM, the UK CBI Business Survey at 8:00 PM, the US MBA Mortgage Applications Index at 9:00 PM, US Initial Jobless Claims and US Durable Goods Orders at 10:30 PM,at 12:00 AM the US University of Michigan Consumer Sentiment Index, at 12:30 AM US weekly crude oil inventories, at 1:00 AM remarks by German Bundesbank President Nagel, at 1:30 AM remarks by Bank of Canada Governor McClem, and at 2:00 AM US weekly natural gas inventories. We should remain cautious about the downside potential for the euro, which has weakened following President Lagarde’s remarks.

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