With the Eurozone’s May HICP on the rise, attention may turn to the euro’s upside potential

With the Eurozone’s May HICP on the rise, attention may turn to the euro’s upside potential

03.06.2024

Last weekend, the Canadian dollar rose against the yen following the release of Canada’s first-quarter GDP on May 31, which recovered to 1.7% from the previous reading of 1.0%. The CAD/JPY pair rose from 114.442 to 115.484, breaking above the 20-period moving average on the hourly chart.On the 4-hour chart, the price has surged to the +2σ level of the Bollinger Bands, so we should be cautious of corrective price movements during U.S. trading hours.

European currencies rose against the yen as the Eurozone’s May Harmonized Index of Consumer Prices (HICP), released last weekend, showed a year-over-year increase of 2.6%, up from 2.4% the previous month.The EUR/JPY pair rose from 169.443 to 170.761. It has moved back above the 200-period simple moving average (SMA) on the hourly chart. On the 4-hour chart, the 75-period SMA is acting as support, driving a rebound, and on the daily chart, the upward trend along the 20-period SMA continues; therefore, we should watch for further gains during European trading hours.

Today’s economic indicators include Japan’s capital expenditure at 8:50, Indonesia’s Manufacturing PMI and South Korea’s Manufacturing PMI at 9:30, China’s Caixin Manufacturing PMI at 10:45, Indonesia’s Consumer Price Index at 13:00, India’smanufacturing PMI, 4:00 PM Turkey’s Producer Price Index and Consumer Price Index, 4:30 PM Switzerland’s Manufacturing PMI, 4:55 PM Germany’s Manufacturing PMI, 5:00 PM Eurozone Manufacturing PMI, 10:45 PM U.S. PMI Purchasing Managers’ Index, and 11:00 PM U.S. Construction Spending and U.S. ISM Manufacturing Index.We will be closely monitoring the euro’s upside potential following the rise in the Eurozone’s May HICP.

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