Should we be wary of further downside potential for the euro, now the weakest currency?

Should we be wary of further downside potential for the euro, now the weakest currency?

11.06.2024

In yesterday’s U.S. currency trading, the U.S. dollar rose against the yen. The USD/JPY pair climbed from 156.573 to 157.191. The rise was supported by the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the pair is trading above the 10-period MA, and similar price action is observed on the daily chart. Furthermore, as the daily RSI is testing the upside around the 56 level, we will be watching for further gains in the U.S. dollar during European trading hours.

European currencies weakened as the euro fell following the rise of right-wing parties in the European Parliament elections. The euro/dollar pair gapped down, falling from 1.0799 to 1.0732. It has now settled below the 10-period moving average on the hourly chart.On the 4-hour chart, the pair has broken significantly below the 200-day moving average (SMA), which had been viewed as a key support level, and it has similarly fallen below the 200-day SMA on the daily chart. We need to carefully assess whether the euro will continue to weaken against the U.S. dollar.

Today’s economic indicators include South Korea’s current account balance at 8:00, Japan’s money supply at 8:50, the Philippines’ trade balance at 10:00, Australia’s NAB Business Confidence Index at 10:30, the UK’s ILO unemployment rate and employment statistics at 15:00,at 7:00 PM: US NFIB Business Optimism Index; at 8:00 PM: South Africa Manufacturing Output; at 9:00 PM: Mexico Industrial Production; at 9:30 PM: Canada Housing Starts; and at 2:00 AM: US 10-Year Treasury Auction. We intend to carefully monitor the downside potential of the euro, which has become the weakest currency.

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