It remains to be seen whether the euro will recover following the ECB meeting

It remains to be seen whether the euro will recover following the ECB meeting

14.12.2023

In the previous day’s U.S. currency markets, the Federal Open Market Committee (FOMC) announced that it would keep the policy rate unchanged at 5.5%. Additionally, Federal Reserve Chair Powell stated, “We discussed the timing of rate cuts at today’s meeting” and “The policy rate is near its peak for this cycle.” As a result, the U.S. dollar weakened against all currencies. The EUR/USD pair rose from 1.0773 to 1.0896, gaining approximately 120 pips.From a technical perspective, since the EUR/USD pair has been rising from the 200-period simple moving average (SMA) on the 4-hour chart, we should watch to see if the upward trend continues for the time being.

Ahead of today’s ECB policy rate announcement, the euro fell against the yen. The EUR/JPY pair dropped by 3 yen, from 157.471 to 154.558. It has continued to test lower levels during today’s Asian trading session. Technically, the EUR/JPY is currently trading just below the 200-day simple moving average (SMA). A break below the 200-day SMA would result in the loss of a major support level, so traders should remain highly vigilant regarding price movements following today’s ECB announcement.

Today, at 3:30 PM, India’s Wholesale Price Index; at 4:00 PM, Sweden’s Consumer Price Index; at 4:30 PM, Switzerland’s Imported Producer Prices; at 5:30 PM, the Swiss National Bank’s SMI policy rate and statement; at 6:00 PM, remarks by SNB Governor Jordan; at 9:00 PM, the UK’sBOE policy rate and statement, 10:15 PM: Eurozone ECB policy rate and statement, 10:30 PM: US initial jobless claims, Canadian manufacturing sales, US retail sales, and US import price index, 10:45 PM: Remarks by ECB President Lagarde, and 12:00 AM: US business inventories.We will be closely monitoring the ECB to see if the euro recovers.

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