Market participants are likely to keep a close eye on the euro’s upside potential following the strong rise in Germany’s ZEW Economic Sentiment Index

Market participants are likely to keep a close eye on the euro’s upside potential following the strong rise in Germany’s ZEW Economic Sentiment Index

15.05.2024

In yesterday’s U.S. trading session, the Canadian dollar weakened as Canadian March wholesale sales, released yesterday, deteriorated from 0.0% in the previous month to -1.1%. The AUD/CAD pair rose from 0.9004 to 0.9048. On the hourly chart, the 200-period SMA is acting as a support level, while on the 4-hour chart, the 75-period MA is providing support.On the daily chart, the uptrend along the 10-day moving average continues, so we will be watching for upside potential during U.S. trading hours.

European currencies rose against the U.S. dollar as the German ZEW Economic Sentiment Index for May, released yesterday, rebounded to 47.1 from 42.9 the previous month, exceeding market expectations of 45.9.The EUR/USD pair rose from 1.0767 to 1.0825. A rebound was observed from the 20-period moving average (MA) on the hourly chart. Similarly, on the 4-hour chart, the 20-period MA is acting as a support level, and on the daily chart, the price has broken above the line where the long-term and short-term MAs converge.

Today’s schedule includes the Australian Wage Price Index at 10:30, Indonesia’s Trade Balance at 13:00, Sweden’s Consumer Price Index at 15:00, France’s Consumer Price Index at 15:45, the Eurozone’s Real GDP and Industrial Production at 18:00, and South Africa’s Retail Sales at 20:00,U.S. MBA Mortgage Applications at 1:30 PM, Canadian Housing Starts at 9:15 PM, Canadian Manufacturing Sales, U.S. Consumer Price Index, and U.S. Retail Sales at 9:30 PM, U.S. Business Inventories and U.S. NAHB Housing Market Index at 11:00 PM, remarks by U.S. Federal Reserve Vice Chair Barro at 11:30 PM, U.S. Weekly Crude Oil Inventories at 1:00 AM, and Russian Real GDP at 1:00 AM.We will closely monitor the euro’s upside potential following the strong rise in the German ZEW Economic Sentiment Index.