Should we keep a close eye on the euro, whose upward momentum shows no signs of abating?

Should we keep a close eye on the euro, whose upward momentum shows no signs of abating?

22.02.2024

In yesterday’s U.S. currency trading, the U.S. dollar weakened against the euro after the U.S. MBA Mortgage Applications Index, released yesterday, deteriorated from the previous reading of -2.3% to -10.6%. The EUR/USD pair rose from 1.0789 to 1.0823. It continued to climb during today’s Asian session, showing an uptrend along the 20-period and 10-period moving averages on the hourly chart. We will be watching to see if the U.S. dollar continues to weaken into the European session.

European currencies rose against the yen as the February consumer confidence index improved to -15.5 from -16.1 the previous month. The euro/yen pair rose by about 1 yen, from 161.940 to 162.932. This marks the sixth consecutive day of gains. We will need to assess carefully whether the euro will continue to rise against the yen and reach the recent high around 163.600.

Today’s schedule includes Japan’s domestic and foreign securities investment at 8:50, Indonesia’s current account balance at 12:00, India’s manufacturing and services PMI at 14:00, France’s business confidence at 16:45, France’s manufacturing and services PMI at 17:15, Germany’s manufacturing and services PMI at 17:30, and the Eurozone’sManufacturing/Services PMI, at 6:30 PM UK Manufacturing/Services PMI, at 7:00 PM Eurozone Consumer Price Index, at 10:30 PM Canada Retail Sales and US Initial Jobless Claims, at 11:45 PM US PMI Purchasing Managers’ Index, and at 12:00 AM US Existing Home Sales.We will closely monitor the euro, as its upward momentum shows no signs of abating.