Should we focus on the upside potential of the rising euro?

Should we focus on the upside potential of the rising euro?

25.04.2024

In yesterday’s U.S. trading session, the Canadian dollar rose against the yen after Canada’s February retail sales figures, released yesterday, showed a narrowing of the decline to -0.1% from -0.3% the previous month. The CAD/JPY pair rose from 112.853 to 113.381.It has continued to rise during today’s Asian session, already climbing to 113.498. On the 4-hour chart, the 20-day moving average is acting as support, triggering a rebound, and on the daily chart, the pair has risen for six consecutive days; therefore, we should watch for corrective price movements during U.S. trading hours.

European currencies rose against the yen as the German IFO Business Climate Index for April, released yesterday, climbed to 89.4 from the previous reading of 87.8.The euro/yen pair rose from 165.385 to 166.454, marking its fourth consecutive day of gains. On the 4-hour chart, a band walk along the +2σ line of the Bollinger Bands is evident, and on the daily chart, the RSI is hovering just below 70 with some room to spare, so we will be watching for further upside potential during European trading hours.

Today’s schedule includes South Korea’s real GDP at 8:00, Japan’s foreign and domestic securities investment at 8:50, Malaysia’s consumer price index at 13:00, Japan’s economic sentiment index at 14:00, Germany’s GfK consumer confidence survey at 15:00, France’s business climate index at 15:45, and Hong Kong’s trade balance at 17:30,South Africa’s Producer Price Index at 6:30 PM, Turkey’s Central Bank Policy Rate at 8:00 PM, U.S. Initial Jobless Claims, U.S. Q1 GDP, and U.S. Wholesale Inventories at 9:30 PM, U.S. Existing Home Sales at 11:00 PM, and remarks by German Bundesbank President Nagel at 12:15 AM.We intend to cautiously monitor the upside potential of the rising euro.