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 strengthened against 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 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 euro/dollar pair rose from 1.0909 to 1.0972, rebounding after touching the 200 EMA on the 4-hour chart. However, during today’s Asian trading session, the pair’s upside was capped by the 20 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 currency strength dynamics.

Today, at 14:00: Singapore retail sales, Japan’s Consumer Sentiment Index, and India’s Services PMI; at 16:00: Germany’s retail sales; at 17:00: Taiwan’s Consumer Price Index; at 18:30: the UK’s Construction PMI; and at 19:00: the Eurozone’sConsumer Price Index, and the Eurozone Producer Price Index; at 21:00, Brazil’s Industrial Production; at 22:30, U.S. and Canadian Employment Reports; at 24:00, the U.S. ISM Non-Manufacturing PMI and the Canadian Ivey PMI; and at 27:30, remarks by U.S. Federal Reserve’s Barkin:Remarks by Richmond Fed President Barkin. I want to carefully monitor whether the euro, which has become the strongest currency, will maintain its strength following these economic indicator releases.