Should we keep a close eye on the direction of the euro, which rose despite worsening economic sentiment?

Should we keep a close eye on the direction of the euro, which rose despite worsening economic sentiment?

28.06.2024

In U.S. currency trading yesterday, the U.S. dollar weakened during U.S. trading hours despite the fact that the number of new U.S. unemployment insurance claims, released yesterday, fell to 233,000 from 238,000 the previous week, coming in below market expectations. The EUR/USD pair rose from 1.0676 to 1.0727, showing a recovery along the 20-period moving average (MA) on the hourly chart.On the 4-hour chart, the 20-period moving average is acting as support, while on the daily chart, the price is consolidating from below the 10-period moving average.

Despite the slight decline in the Eurozone’s June business sentiment index—released yesterday—from 96.0 in the previous month to 95.9, the euro rose against the yen.The EUR/JPY pair rose from 171.393 to 172.166, moving in line with the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, prices are trading above the 10-period MA. Since the daily chart shows a similar price movement, traders should watch for corrective price movements during European trading hours.

Today’s schedule includes Japan’s employment statistics, Tokyo Consumer Price Index, and industrial production at 8:30; UK real GDP at 15:00; France’s Consumer Price Index and Producer Price Index at 15:45; Switzerland’s KOF Leading Index at 16:00; Germany’s employment statistics at 16:55; and at 19:00, U.S. Federal Reserve Governor Barkin:Richmond Fed President remarks, at 9:30 PM: Canada’s real GDP, U.S. personal income, and U.S. PCE deflator; at 10:45 PM: U.S. Chicago PMI; at 11:00 PM: U.S. University of Michigan Consumer Sentiment Index; and at 1:00 AM: U.S. Fed Governor Bowman remarks. We will carefully assess the direction of the euro, which has risen despite deteriorating economic sentiment.

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