Will the market wait and see how the euro performs despite the deterioration in Germany’s ZEW economic sentiment?

Will the market wait and see how the euro performs despite the deterioration in Germany’s ZEW economic sentiment?

14.08.2024

In yesterday’s U.S. currency trading, the U.S. dollar became the weakest currency during U.S. trading hours after the U.S. July Producer Price Index, released yesterday, showed a year-over-year decline of approximately 0.4 percentage points from the previous month’s 2.6% to 2.2%. The USD/JPY pair fell from 147.955 to 146.564.The price has moved from above the 20-period moving average (MA) on the hourly chart to below it. On the 4-hour chart, the price is consolidating at the 38.2% Fibonacci retracement level, which corresponds to the recent high.

Despite the German ZEW Economic Sentiment Index for August, released yesterday, falling sharply to 19.2 from 41.8 the previous month—well below the market forecast of 34.2—the euro strengthened against the yen.The EUR/JPY pair rose from 160.616 to 161.815. It has gently moved above the centerline of the hourly Bollinger Bands. On the daily chart, it is currently attempting to break through the 10-day moving average (10MA), which is acting as resistance.

Today’s schedule includes South Korea’s employment statistics at 8:00, the RBNZ’s policy rate decision and statement at 11:00, RBNZ Governor Orr’s press conference at 12:00, Sweden’s CPI, the UK’s CPI, UK retail sales, and the UK’s PPI at 15:00, India’sWholesale Price Index, at 15:45 the French CPI, at 18:00 the Eurozone Real GDP, at 20:00 the U.S. MBA Mortgage Applications Index, at 21:30 the U.S. CPI, and at 23:30 the U.S. Weekly Crude Oil Inventories. I intend to carefully monitor the euro’s movements, which have been rising despite the deterioration in the German ZEW Economic Sentiment Index.

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