Should we be wary of the euro's weakness as it falls against the U.S. dollar, which is currently closed?

Should we be wary of the euro's weakness as it falls against the U.S. dollar, which is currently closed?

20.02.2024

Due to the market closure in the U.S. the previous day for a holiday, volatility in the U.S. dollar declined.The U.S. dollar showed no significant price movements throughout the day, with USD/JPY trading in a narrow range between 149.877 and 150.195. During today’s Asian session, the pair has been trending higher. However, since USD/JPY remains in the low 150s, we should exercise caution in assessing whether the U.S. dollar will continue to rise heading into the weekend.

Among European currencies, the euro fell slightly against the U.S. dollar. The EUR/USD pair dropped from 1.0789 to 1.0761. This decline followed the formation of a triple top on the hourly chart. Although the pair remains below the 20-day moving average on the daily chart, the downside is supported by the 200-period simple moving average on the hourly chart; therefore, we need to carefully assess whether the euro will continue to weaken during European trading hours.

Today’s economic indicators include the Chinese Prime Lending Rate at 10:15, Malaysia’s trade balance at 13:00, Hong Kong’s employment statistics at 17:30, the Eurozone’s current account balance at 18:00,South Africa’s employment statistics at 6:30 PM, the Eurozone’s construction output at 7:00 PM, Canada’s Consumer Price Index at 10:30 PM, the U.S. Leading Economic Index at midnight, South Korea’s Producer Price Index at 6:00 AM the following day, and New Zealand’s Producer Price Index at 6:45 AM. We should remain cautious regarding the euro’s weakness, which has declined against the U.S. dollar during the U.S. market close.

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