Will the Euro, Which Is Struggling to Gain Ground, Stop Its Decline? Watch This Space
15.03.2024
- Retail and Wholesale Sales
- New Zealand Manufacturing PMI
In the U.S. currency market yesterday, the U.S. dollar emerged as the strongest currency during U.S. trading hours after the release of U.S. February retail sales data showed an improvement from the previous month’s -0.8% to +0.6%.The U.S. dollar surged, particularly against the euro, which had been showing signs of 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 (20MA) is acting as support and has halted the decline, so traders should watch for a potential rebound during European trading hours.
European currencies fell against the yen as Germany’s January current account balance, released yesterday, declined to 29.7 billion euros from 31.4 billion euros the previous month.The euro/yen 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 euro/yen pair is declining as it faces resistance at the 20-period moving average (MA), so we should remain vigilant for any further weakness in the euro against the yen during European trading hours.
Today’s economic indicators include the New Zealand Manufacturing PMI at 6:30, Japan’s Tertiary Industry Activity Index at 13:30, France’s Consumer Price Index at 16:45, Canada’s Housing Starts at 21:15, Canada’s Wholesale Sales at 21:30,Canada’s International Securities Turnover, the U.S. New York Fed Manufacturing Index, and the U.S. Import Price Index at 1:30 p.m.; U.S. Industrial Production and Capacity Utilization at 10:15 p.m.; and the U.S. University of Michigan Consumer Sentiment Index at 11:00 p.m.We’ll need to carefully assess whether the euro, which has been facing resistance on the upside, will stop its decline.
Author: Keisuke Sakurai
