Market participants are likely to keep a close eye on the upside potential of the euro, which has risen against both the U.S. dollar and the British pound.
04.03.2024
- Swiss Consumer Price Index
- European and Eurozone Investor Sentiment Index
Last weekend, the U.S. dollar fell across the board during U.S. trading hours after the University of Michigan’s February Consumer Sentiment Index, released on the 1st, came in significantly lower at 76.9, down from 79.6 the previous month.The EUR/USD pair rose from 1.0798 to 1.0842. The daily 200-day EMA acted as support, causing the pair to rebound off the line. Technically, the EUR/USD has shown a rebound at the weekly 20-day MA, so it will be worth watching whether the pair extends its gains at the start of the week.
Despite the release of the Eurozone’s February Harmonized Index of Consumer Prices (HICP), which showed core inflation falling by 0.2 percentage points year-over-year to 3.1% from 3.3% the previous month, the euro rose against the pound. The EUR/GBP pair climbed from 0.8554 to 0.8575, breaking well above the +3σ line of the hourly Bollinger Bands.On the daily chart, the pair is approaching the threshold of entering an uptrend along the 20-day moving average, so we will be watching closely to see if the pound weakens during European trading hours.
Today, at 8:50 AM, Japan’s monetary base; at 9:30 AM, South Korea’s Manufacturing PMI and Australia’s Housing Construction Permits; at 4:00 PM, Turkey’s Consumer Price Index and Producer Price Index; at 4:30 PM, Switzerland’s Consumer Price Index; at 4:45 PM, France’s Budget Balance;at 6:00 PM, the Eurozone Investor Sentiment Index; at 9:00 PM, Mexico’s Gross Fixed Capital Formation; at 1:00 AM, remarks by Harker, President of the Federal Reserve Bank of Philadelphia; and at 1:30 AM, a U.S. 6-month Treasury bill auction. We will carefully assess the upside potential for the euro, which has risen against both the U.S. dollar and the British pound.
Author: Keisuke Sakurai
