Will the euro fall across the board following the ECB announcement? Caution is advised.

Will the euro fall across the board following the ECB announcement? Caution is advised.

26.01.2024

In yesterday’s U.S. trading session, the Canadian dollar rose against the yen following the Bank of Canada’s policy rate announcement. The CAD/JPY pair climbed from 108.928 to 109.681, breaking above the 20-period moving average on the 4-hour chart. Furthermore, the 4-hour RSI rebounded without reaching the oversold level of 30, and since the RSI on the higher-timeframe daily chart continues to trend upward, we should keep an eye on the Canadian dollar’s upside potential during U.S. trading hours.

European currencies fell against the yen after the ECB announced yesterday that it would keep its policy rate unchanged at 4.75%, in line with market expectations. The euro/yen pair dropped by approximately 1.3 yen, from 160.966 to 159.699.Although the euro/yen pair fell sharply, it has held the support line at the 20-day moving average (MA) on the daily chart. With the daily RSI at 55, there is room for an upward move, so traders should remain vigilant regarding the euro’s price action during European trading hours.

Today’s economic indicators include the Japan Tokyo Consumer Price Index at 8:30, the UK GfK Consumer Confidence Index at 9:01, Singapore Industrial Production at 14:00, the Germany GfK Consumer Confidence Index at 16:00, the France Consumer Confidence Index at 16:45, the Eurozone Money Supply at 18:00, and the Mexico Trade Balance at 21:00,22:30: US PCE Deflator and US Personal Income; 23:00: US Dallas Fed Consumer Price Index; 24:00: US Existing Home Sales Pending; and 25:00: Canada’s Fiscal Balance. We will be closely monitoring whether the euro will see across-the-board weakness following the ECB announcement.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   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

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   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?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed