With the ECB keeping interest rates unchanged, investors should watch for further downside potential in the euro

With the ECB keeping interest rates unchanged, investors should watch for further downside potential in the euro

12.04.2024

In the U.S. currency market yesterday, the U.S. dollar rose during U.S. trading hours after the number of new U.S. unemployment insurance claims, released yesterday, fell slightly to 211,000 from the previous reading of 221,000.The EUR/USD pair fell from 1.0756 to 1.699. The decline was driven by resistance at the 20-period moving average on the hourly chart. On the 4-hour chart, the EUR/USD price has fallen to the -2σ level of the Bollinger Bands, and a similar pattern is visible on the daily chart.

Following yesterday’s ECB policy rate announcement, in which the policy rate was kept unchanged at 4.50%, the euro became the weakest currency among major currencies.The EUR/JPY pair fell in contrast to the movement of the USD/JPY pair, dropping from 164.695 to 163.934. On the 4-hour chart, while the 75-period moving average is providing support on the downside, the price is forming lower highs, so we will be watching closely to see if a recovery occurs during European trading hours.

Today’s schedule includes South Korea’s employment statistics at 8:00, Singapore’s real GDP at 9:00, Japan’s industrial production at 13:30, Sweden’s consumer price index, the UK’s industrial production, the UK’s manufacturing output, and Germany’s consumer price index at 15:00, France’s consumer price index at 15:45, and India’sIndustrial Production, at 9:30 PM US Import/Export Price Index, at 10:00 PM Canada Existing Home Sales, remarks by US Federal Reserve Bank of Boston President Collins, at 11:00 PM US University of Michigan Consumer Sentiment Index, and at 3:30 AM remarks by US Federal Reserve Bank of Atlanta President Bostic.We will closely monitor the downside potential for the euro, which fell after the ECB kept interest rates unchanged.