Watch for the sustainability of the euro’s rebound against the dollar

Watch for the sustainability of the euro’s rebound against the dollar

07.02.2024

In yesterday’s U.S. currency trading, the Canadian dollar fell against the yen after Canada’s December housing starts data, released yesterday, showed a decline from the previous month’s 3.9% drop to 14.0%. The CAD/JPY pair fell from 109.940 to 109.445.The pair has moved just below the daily 20-day moving average (MA). Technically, CAD/JPY is gradually rising while finding support at the daily 20-day MA, so we will be watching price movements during U.S. trading hours.

European currencies rose as the euro gained against the U.S. dollar following yesterday’s release of December retail sales data for the Eurozone, which showed a slight improvement year-over-year, narrowing the decline from the previous month’s 1.1% to 0.8%.The euro rose against the U.S. dollar from 1.0722 to 1.0762, breaking above the 20-period moving average on the hourly chart. On the daily chart, the currency has rebounded from the -3σ line of the Bollinger Bands, so we will be watching closely to see if this rebound continues for a while.

Today’s schedule includes Malaysia’s industrial production at 1:00 PM, Japan’s Economic Sentiment Index at 2:00 PM, Switzerland’s employment statistics at 3:45 PM, Germany’s industrial production at 4:00 PM, Thailand’s policy rate and statement at 4:05 PM, France’strade balance at 17:00, Taiwan’s trade balance at 17:00, the U.S. MBA Mortgage Applications Index and Brazil’s retail sales at 21:00, the U.S. trade balance and Canada’s international merchandise trade at 22:30, remarks by Fed Governor Kuehgl at 25:00, and the U.S. 10-year Treasury auction at 27:00. Keep an eye on whether the EUR/USD pair’s rebound and rise will continue.

Past Market Reports

1. 20.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

2. 17.04.2026New

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

3. 16.04.2026New

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

4. 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

5. 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?

6. 13.04.2026

   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

7. 10.04.2026

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

8. 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?

9. 08.04.2026

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

10. 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