With the euro facing resistance on the upside, should we be wary of its downside potential?
01.04.2024
- U.S. PMI (Purchasing Managers' Index)
- Israel: Manufacturing Output
Last weekend, with U.S. markets closed for the Easter holiday, trading was light, and the Canadian dollar fluctuated against the yen. The CAD/JPY pair traded between 111.582 and 111.900, closing with support at the 200-period SMA on the hourly chart.During today’s Asian session, the pair has risen to 111.980, reaching the +2σ level of the 4-hour Bollinger Bands. We will be closely monitoring whether the Canadian dollar continues to strengthen against the yen.
European currencies saw the euro decline slightly against the pound after France’s February Producer Price Index (PPI), released on March 29, worsened to -5.5% year-over-year from the previous month’s -5.1%.The euro/pound pair fell from 0.8554 to 0.8522, moving across the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the pair continues to decline along the -2σ line of the Bollinger Bands, while on the daily chart, it is trading below the centerline.
Today’s economic indicators include the Bank of Japan’s Tankan survey for the first quarter at 8:50, Indonesia’s Manufacturing PMI at 9:30, China’s Caixin Manufacturing PMI at 10:45, Indonesia’s Consumer Price Index at 13:00, Turkey’s Manufacturing PMI at 16:00,at 7:00 p.m., Israel’s Manufacturing Production; at 10:45 p.m., the U.S. PMI Purchasing Managers’ Index; at 11:00 p.m., U.S. Construction Spending and the U.S. ISM Manufacturing Index; and at 7:10 a.m. the following day, Australia’sremarks by RBA Deputy Governor Kent, and at 7:50, remarks by U.S. Federal Reserve Governor Cook. I want to carefully monitor the downside potential for the euro, which is facing resistance on the upside.
Author: Keisuke Sakurai
