Will the euro, which has been struggling to gain ground, stop its decline?

Will the euro, which has been struggling to gain ground, stop its decline?

15.03.2024

In yesterday’s U.S. currency trading, the U.S. dollar emerged as the strongest currency during U.S. trading hours after the release of February U.S. retail sales data, which improved to a 0.6% increase from the previous month’s 0.8% decline. The U.S. dollar surged particularly against the euro, which had been showing weakness. The EUR/USD pair fell by approximately 70 pips from 1.0954 to 1.0880.On the daily chart, the 20-day moving average is acting as support and has halted the decline, so we should watch for a potential rebound during European trading hours.

European currencies fell against the yen after Germany’s January current account balance, released yesterday, declined to €29.7 billion from €31.4 billion the previous month.The EUR/JPY pair fell from 161.914 to 161.101, breaking below the 200-period simple moving average (SMA) on the 4-hour chart. On the daily chart, the pair is declining as it faces resistance at the 20-period moving average (MA), so we should be cautious about the possibility of the euro weakening against the yen during European trading hours.

Today’s economic indicators include the New Zealand Manufacturing PMI at 6:30, the Japan Tertiary Industry Activity Index at 13:30, the France Consumer Price Index at 16:45, the Canada Housing Starts at 21:15, and the Canada Wholesale Sales at 21:30,Canada’s International Securities Turnover, the U.S. NY Fed Manufacturing Index, and the U.S. Import Price Index; at 10:15 PM, U.S. Industrial Production and the U.S. Capacity Utilization Rate; and at 11:00 PM, the U.S. University of Michigan Consumer Sentiment Index. We will carefully assess whether the euro, which has been facing resistance on the upside, will stop its decline.