Market Participants May Keep a Close Eye on the Euro’s Potential for Recovery After the ECB Announcement
15.04.2024
- Switzerland—Producer Import Prices
- Europe: Industrial Production
In the U.S. currency markets last weekend, the U.S. dollar strengthened against the euro despite the fact that the University of Michigan’s April Consumer Sentiment Index, released on the 12th, fell to 77.9 from 79.4 the previous month.The EUR/USD pair fell from 1.0728 to 1.0622, dropping to the -2σ level of the hourly Bollinger Bands. On the 4-hour chart, the RSI fell below 30—the oversold threshold—and dropped to 20; similarly, the daily chart also shows an oversold signal on the RSI.
European currencies fell against the yen after the final figures for Germany’s March consumer price index, released last weekend, showed a year-over-year increase of 2.2%, unchanged from the previous month.The euro/yen pair fell from 164.395 to 162.273, touching the -3σ level of the hourly Bollinger Bands. Similarly, on the 4-hour chart, the pair fell to the -3σ level of the Bollinger Bands, and on the daily chart, price fluctuations are being observed as the price moves from above the 20-day moving average (MA) to below it.
Today’s economic indicators include Japan’s machinery orders at 8:50, Switzerland’s producer import prices and India’s wholesale prices at 15:30, Turkey’s employment statistics at 16:00, and the Eurozone’sIndustrial Production, at 19:00: Israel’s employment statistics, at 20:15: remarks by BOE Deputy Governor Breeden, at 21:15: Canada’s housing starts, at 21:30: Canada’s manufacturing sales, the U.S. NY Fed Manufacturing Index, and U.S. retail sales,U.S. business inventories at 23:00, and the U.S. NAHB Housing Market Index. We will cautiously monitor the euro’s potential for recovery after it weakened following the ECB announcement.
Author: Keisuke Sakurai
