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 U.S. currency trading yesterday, 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 trading session, already reaching 113.498. On the 4-hour chart, the 20-period moving average (MA) is acting as support, triggering a rebound, and on the daily chart, the pair has now risen for six consecutive days; therefore, traders should watch for corrective price movements during U.S. trading hours.

European currencies rose, with the euro gaining against the yen after Germany’s April IFO Business Climate Index, released yesterday, rose 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 can be observed, 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, and France’sBusiness Climate Survey, at 17:30 Hong Kong’s trade balance, at 18:30 South Africa’s Producer Price Index, at 20:00 Turkey’s central bank policy rate, at 21:30 U.S. initial jobless claims, U.S. first-quarter GDP, and U.S. wholesale inventories,at 23:00: U.S. Existing Home Sales Index; and at 24:15: Remarks by Nagel, President of the German Federal Bank. I intend to cautiously monitor the upside potential of the rising euro.