Should We Keep an Eye on the Euro's Upside Potential as It Rises Heading Into the Weekend?
08.02.2024
- * Policy Interest Rate and Policy Statement Announcement *
- U.S. Wholesale Inventories
In the U.S. currency market the previous day, the U.S. dollar fell against the euro as Collins, President of the Boston Fed, adopted a slightly hawkish stance, stating, “More data is needed to support a rate cut.”The EUR/USD pair rose from 1.0746 to 1.0783. An upward move along the 20-period moving average (MA) on the hourly chart was confirmed. On the higher-time-frame weekly chart, the EUR/USD is forming a bullish candle with a lower wick, so traders should watch for potential upside momentum during U.S. trading hours.
European currencies rose against the yen as Germany’s December industrial production, released yesterday, showed a year-over-year decline of 3.0%, narrowing from the previous month’s 4.8% drop. The euro/yen pair rose from 158.902 to 159.726.It continues to rise during today’s Asian trading session as well. From a technical perspective, the EUR/JPY pair is consolidating around the 20-day moving average (MA), so we will be watching for a potential breakout from this range during European trading hours.
Today’s schedule includes the China Producer Price Index at 10:30, the Thailand Consumer Confidence Index at 12:00, the India policy rate and statement at 13:30, the Japan Economic Watchers Survey at 14:00, and at 18:00, the EurozoneECB Monthly Report, at 20:00 South Africa’s Manufacturing Output, at 21:00 Mexico’s Consumer Price Index, at 22:30 U.S. Initial Jobless Claims, remarks by U.S. Federal Reserve’s Barkin:Remarks by Richmond Fed President Barkin, at 24:00: U.S. Wholesale Inventories, and at 27:00: U.S. 30-Year Treasury Auction. We will cautiously monitor the upside potential for the euro, which has been rising heading into the weekend.
Author: Keisuke Sakurai
