All eyes are on whether the euro’s upward trend will continue following the ECB meeting

All eyes are on whether the euro’s upward trend will continue following the ECB meeting

15.12.2023

In the U.S. currency market yesterday, the U.S. dollar was the weakest currency throughout the day, despite the fact that U.S. retail sales for November, released yesterday, improved significantly from a 0.1% decline the previous month to a 0.3% increase.The EUR/USD pair rose by just under 150 pips, from 1.0861 to 1.1009, significantly surpassing this month’s high. Technically speaking, the EUR/USD has risen sharply from just below the 20-week moving average, and as the pattern is beginning to form an expansion, we should watch for a rebound and upward movement for the time being.

The euro rose against the yen after the European Central Bank (ECB) announced yesterday that it would keep its policy rate unchanged at 4.5%, in line with market expectations.The euro/yen pair rose from 153.838 to 156.057, avoiding a new monthly low. The pair rebounded after touching the 200-day simple moving average (SMA), and the focus is now on whether it will form a double bottom on the daily chart. We will be watching closely to see if the upward movement driven by short covering continues through the weekend.

Today, at 4:45 PM, France’s Consumer Price Index; at 5:15 PM, France’s Manufacturing/Services PMI; at 5:30 PM, Germany’s Manufacturing/Services PMI; at 6:00 PM, the Eurozone’s Manufacturing/Services PMI; at 6:30 PM, the UK’s Manufacturing/Services PMI; and at 7:00 PM, the Eurozone’strade balance, at 7:30 PM the Russian policy rate, at 10:15 PM Canadian housing starts, at 10:30 PM Canadian international securities turnover, at 10:30 PM the U.S. New York Fed Manufacturing Index, at 11:15 PM U.S. industrial production, and at 11:45 PM the U.S. Manufacturing/Services PMI.We will carefully monitor price movements over the weekend to see if the euro’s upward trend following the ECB announcement will continue.