Will the euro, which is expected to remain unchanged following the ECB meeting, show any movement after the release of economic indicators?

Will the euro, which is expected to remain unchanged following the ECB meeting, show any movement after the release of economic indicators?

25.01.2024

In the previous session, U.S. currency saw the dollar weaken against the euro as U.S. Treasury yields softened during U.S. trading hours. The EUR/USD pair rose from 1.0841 to 1.0932, rebounding after breaking well above the 200-period simple moving average (SMA) on the hourly chart.Technically, the EUR/USD pair is showing an expansion pattern on the 4-hour chart, with both the upper and lower boundaries widening. We will be watching closely to see if prices trend in one direction during U.S. trading hours.

Ahead of today’s ECB policy rate announcement, European currencies traded without a clear direction, with the euro in particular lacking momentum. The euro/yen pair fell slightly from 161.067 to 160.176. During today’s Asian trading session, it has been trading in a narrow range around 160.784. While the market expects the ECB to keep its policy rate unchanged at 4.5% today, we will be watching closely to see if the euro continues to weaken in the absence of any surprises.

Today, at 8:50 AM, Japan’s foreign equity investment data will be released; at 4:00 PM, Sweden’s producer price index; at 4:45 PM, France’s manufacturing PMI; at 6:00 PM, Germany’s IFO business climate index; at 8:00 PM, France’s unemployment figures; at 8:00 PM, the UK’s retail sales figures;at 9:00 PM, Canada’s Business Barometer; at 10:00 PM, U.S. Building Permits; at 10:15 PM, the ECB’s policy rate decision and statement; at 10:30 PM, U.S. Durable Goods Orders, U.S. GDP, U.S. Initial Jobless Claims, U.S. Wholesale Inventories, and U.S. GDP;at 10:45 PM: ECB President Lagarde’s press conference; at 12:00 AM: U.S. new home sales; and at 3:00 AM: U.S. 7-year Treasury auction. I want to closely monitor whether the euro, which is expected to remain unchanged following the ECB decision, will show any movement after the release of these indicators.