All eyes are on whether the euro will rise following the release of economic indicators during European trading hours.
08.01.2024
- German Manufacturing Orders
- Investor Sentiment Index for Europe and the Eurozone
Last weekend, following the release of Canada’s December employment statistics on the 5th—which showed the unemployment rate remained unchanged from the previous month at 5.8% and the number of employed persons fell from 24,900 to 1,000—the Canadian dollar fell against the yen from 109.019 to 108.043.From a technical perspective, the upward trend along the 10-period moving average (MA) on the 4-hour chart has paused, and the pair has now fallen below the 10-MA. Therefore, we will be closely monitoring whether the CAD/JPY pair continues to weaken at the start of the week.
European currencies rose as the euro strengthened against the U.S. dollar following the release of the Eurozone’s December consumer price index last weekend, which showed a year-over-year increase of 2.9%, up from 2.4% the previous month.The euro rebounded against the U.S. dollar from 1.0877 to 1.0998. The 200-period simple moving average (SMA) on the 4-hour chart has once again served as a support line. If the price can break above the 1.0971 level with a real body on the 4-hour chart, it could form a double bottom; therefore, we will be watching to see if it can break through the recent high.
Today, at 4:00 p.m., German manufacturing orders, German industrial production, and the German trade balance will be released,Norway’s Manufacturing Production at 4:00 PM; Switzerland’s Consumer Price Index and Retail Sales, as well as Hungary’s Retail Sales, at 4:30 PM; France’s Total Reserves at 4:45 PM; the Eurozone Investor Sentiment Index at 6:30 PM; the Eurozoneunemployment rate, and Eurozone retail sales; at 21:00, Mexico’s Consumer Confidence Index; at 24:00, the U.S. Employment Trends Index; and at 25:30, a U.S. 6-month Treasury bill auction. We will be watching closely to see if the euro rises on the back of these economic indicator releases during European trading hours.
Author: Keisuke Sakurai
