All eyes are on the euro’s movements following the recovery in German industrial production

All eyes are on the euro’s performance following Germany’s recovery in industrial production

08.08.2024

In yesterday’s U.S. trading session, the Canadian dollar rose against the yen. The CAD/JPY pair climbed from 104.547 to 107.582, recovering to just below the 200-period EMA on the hourly chart. On the 4-hour chart, the RSI rebounded from 12 to 55. On the daily chart, the pair has recovered from the -3σ to the -2σ level of the Bollinger Bands. We will be watching price movements during U.S. trading hours to see if the Canadian dollar’s momentum continues.

European currencies saw the euro rise slightly against the yen after Germany’s June industrial production, released yesterday, improved year-on-year from a 6.7% decline in the previous month to a 4.1% decline.The euro rose against the dollar from 1.0905 to 1.0936, moving above the 20-period moving average (MA) on the hourly chart. Since the 20-period MA is acting as support on the 4-hour chart, we will be watching closely to see if the euro continues to rise during European trading hours.

Today’s schedule includes the UK RICS House Price Index at 8:01, Japan’s Balance of Payments and Foreign/Domestic Securities Investment at 8:50, remarks by RBA Governor Block at 11:40, India’s central bank policy rate at 13:30, and Japan’sEconomic Watchers Survey, at 20:00 South Africa’s Manufacturing Production, at 21:30 U.S. Initial Jobless Claims, at 23:00 U.S. Wholesale Inventories, at 23:30 U.S. Weekly Natural Gas Storage, at 26:00 U.S. 30-Year Treasury Auction, and at 28:00 remarks by U.S. Richmond Fed President Barkin.We want to closely monitor the euro’s movements following its rise on the back of Germany’s industrial production recovery.