With Germany's May CPI rebounding, should we keep an eye on the direction of the euro?

With Germany's May CPI rebounding, should we keep an eye on the direction of the euro?

30.05.2024

In the previous day’s U.S. trading session, the Canadian dollar was the weakest currency. Although it typically moves in tandem with the U.S. dollar, it fell in inverse proportion to the U.S. dollar, which was the strongest currency. The CAD/JPY pair fell from 115.282 to 114.743.On the 4-hour chart, the trend, which had been supported by the 20-day moving average (MA), has broken down and is now falling. However, on the daily chart, the pair is still trading above the 10-day MA, so we will be watching closely to see if the Canadian dollar recovers during U.S. trading hours.

Despite the preliminary May consumer price index for Germany, released yesterday, showing a 0.2-point year-over-year increase to 2.4% from the previous month’s 2.2%, the euro fell against the yen.The EUR/JPY pair fell from this month’s high of 170.797 to 169.956, dropping to the 200-period simple moving average (SMA) on the hourly chart. On the 4-hour chart, the pair has broken below the 20-period moving average (MA) that had been providing support, and on the daily chart, the RSI has begun to pull back from just below the 70 level.

Today’s economic indicators include New Zealand housing permits at 7:45, Japan’s foreign and domestic securities investment at 8:50, Australia’s housing permits at 10:30,1:00 PM: Thailand Manufacturing Production Index, 4:00 PM: Switzerland Q1 GDP, 6:00 PM: Eurozone Employment Statistics, 9:30 PM: U.S. Initial Jobless Claims, Canada Current Account,U.S. Real GDP, U.S. Wholesale Inventories, U.S. PCE Deflator, U.S. Existing Home Sales at 23:00, U.S. Weekly Crude Oil Inventories at 24:00, remarks by BOE Deputy Governor Breeden, and remarks by U.S. NY Fed President Williams at 25:05. I intend to carefully monitor the direction of the euro, given that Germany’s May CPI has rebounded and risen.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed