Market participants are likely keeping a close eye on the rising EUR/USD exchange rate

Market participants are likely keeping a close eye on the rising EUR/USD exchange rate

12.02.2024

Last weekend, following the release of Canada’s January employment report on the 9th, which showed the unemployment rate improving from 5.8% to 5.7%, the Canadian dollar rose against the yen immediately after the data was released.The CAD/JPY pair rose from 110.785 to 111.321 before plunging sharply. As it is currently trading around 110.852 during today’s Asian session, we should keep a close eye on whether the CAD/JPY pair will decline during U.S. trading hours.

European currencies rose against the U.S. dollar after Germany’s January consumer price index, released last weekend, showed a year-over-year increase of 2.9%, unchanged from the previous month. The euro rose against the U.S. dollar from 1.0762 to 1.0799, breaking above the 200-period simple moving average (SMA) on the hourly chart. We will be watching price movements during European trading hours to see if the euro continues to rise against the U.S. dollar.

Today’s economic indicators include Turkey’s unemployment rate at 4:00 PM, India’s Consumer Price Index at 9:00 PM, Russia’s trade balance at 11:00 PM, remarks by Fed Governor Bowman at 11:20 PM, remarks by Richmond Fed President Barkin at 2:00 AM, remarks by BoE Governor Bailey at 3:00 AM, and remarks by Kashkari:Minneapolis Fed President, at 2:00 AM: U.S. budget balance, and at 6:55 AM the following day: Remarks by RBA Governor Kohler. We will be closely monitoring the upward movement of the euro/dollar exchange rate.