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 U.S. currency trading, the U.S. dollar rose against the Oceania currencies as the Dollar Index climbed 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 currency 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 once again entered a downtrend. We will closely monitor whether today’s economic data releases during U.S. trading hours will shift the balance of strength among currencies.

Today’s schedule includes Singapore retail sales at 2:00 PM, Japan’s Consumer Sentiment Index, and India’s Services PMI; German retail sales at 4:00 PM; Taiwan’s Consumer Price Index at 5:00 PM; and 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 Barkin, President of the Richmond Fed.I want to watch closely to see if the euro, now the strongest currency, will maintain its strength following these economic releases.