Will the euro, which has become the weakest currency following the deterioration of Germany’s services PMI, continue to weaken, or should we wait and see?

Will the euro, which has become the weakest currency following the deterioration of Germany’s services PMI, continue to weaken, or should we wait and see?

18.12.2023

Last weekend, the U.S. dollar rose against the yen despite the fact that the New York Fed’s Manufacturing Index for December, released on the 15th, deteriorated sharply from 9.1 the previous month to -14.5. This was due to the improvement in U.S. industrial production for November, released on the same day, which rose to +0.2% from -0.6% the previous month.The USD/JPY pair rebounded by approximately 100 pips from 141.408 to 142.448, avoiding a new low. We will be watching closely to see if the US dollar continues to rebound against the yen.

Despite the improvement in Germany’s December manufacturing PMI—which rose to 43.1 from 42.6 the previous month—as announced last weekend, the euro became the weakest currency in Europe during European trading hours. The euro/yen pair fell from 156.496 to 154.406, a contrasting move compared to the rebound in the dollar/yen pair.On the 4-hour chart, the EUR/JPY pair is facing resistance along the 20-period moving average (MA), and on the daily chart, the attempt to continue rebounding from the 200-period simple moving average (SMA) has failed. Therefore, we should remain cautious as the pair may weaken against the yen toward the latter half of the week.

Today’s schedule includes the Czech Republic’s Producer Price Index at 5:00 PM, Germany’s IFO Business Climate Index at 6:00 PM, remarks by Bank of England Deputy Governor Broadbent at 7:30 PM, Israel’s unemployment rate at 8:00 PM, Mexico’s total demand at 9:00 PM,at 10:00 PM the Philippines Consumer Price Index, at 10:30 PM the Canada New Home Price Index, at 12:00 AM the U.S. NAHB Housing Market Index, and at 1:30 AM the U.S. 6-month Treasury bill auction. We will be watching closely to see if the euro, which has become the weakest currency following the deterioration of the German Services PMI, will continue to weaken.

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