Will the euro, now the strongest currency, maintain its strength following the release of economic indicators, or will it remain on the sidelines?

Will the euro, now the strongest currency, maintain its strength following the release of economic indicators, or will it remain on the sidelines?

05.01.2024

In the previous day’s trading, the U.S. dollar strengthened against the Oceania currencies as the Dollar Index rose to 102.4. The AUD/USD pair fell from 0.6759 to 0.6696, marking its fifth consecutive day of decline.On the weekly chart, the AUD/USD pair is in a downtrend and has failed to make new highs, a situation consistent with Dow Theory. We will need to carefully assess whether the Australian dollar will continue to weaken against the U.S. dollar.

Among European currencies, the euro emerged as the strongest during U.S. trading hours. The EUR/USD pair rose from 1.0909 to 1.0972, rebounding after touching the 200-period EMA on the 4-hour chart. However, during today’s Asian session, the pair’s upside was capped by the 20-period MA on the 4-hour chart, and it has since resumed its downward trend. We will closely monitor whether today’s economic data releases during U.S. trading hours will shift the balance of strength among currencies.

Today, at 2:00 PM, Singapore retail sales, Japan’s Consumer Sentiment Index, and India’s Services PMI; at 4:00 PM, Germany’s retail sales; at 5:00 PM, Taiwan’s Consumer Price Index; and at 6:30 PM, the UK’sConstruction PMI, at 7:00 PM: Eurozone CPI and PPI, at 9:00 PM: Brazil Industrial Production, at 10:30 PM: U.S. and Canadian Employment Reports, at 12:00 AM: U.S. ISM Non-Manufacturing PMI and Canadian Ivey PMI, and at 3:30 AM: remarks by U.S. Richmond Fed President Barkin.I want to watch closely to see if the euro, now the strongest currency, will maintain its strength following these economic releases.

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