Despite the decline in the German PMI, attention may turn to the upside potential of the euro/yen pair

Despite the decline in the German PMI, attention may turn to the upside potential of the euro/yen pair

23.08.2024

In the U.S. currency market yesterday, the U.S. dollar rose against the euro despite the fact that the U.S. August Composite PMI (Purchasing Managers' Index), released yesterday, fell to 54.1 from 54.3 the previous month.The EUR/USD pair fell from 1.1165 to 1.1098. It dropped from above the 20-period moving average (MA) on the hourly chart to a level below the 75-period MA. On the 4-hour chart, it has fallen just below the 20-period MA, and on the daily chart, it has pulled back from the +2σ level of the Bollinger Bands.

Despite the fact that Germany’s August manufacturing and services PMIs, released yesterday, both declined from their previous readings, the euro rose against the yen.The EUR/JPY pair fell from 161.469 to 162.908. On the hourly chart, the price has moved from below the 200-period SMA to above it. On the 4-hour chart, the price is forming higher lows, and on the daily chart, it is currently testing whether it can break above the 20-period MA resistance line.

Today’s schedule includes the UK GfK Consumer Confidence Survey at 8:01, Japan’s Consumer Price Index at 8:30, Singapore’s Consumer Price Index at 14:00, France’s Business Sentiment Index at 15:45, Taiwan’s Industrial Production at 17:00, remarks by Bostic, President of the Atlanta Fed, at 21:00, Canada’s Retail Sales at 21:30,23:00 US New Home Sales, remarks by Fed Chair Powell, 24:00 UK remarks by BOE Governor Bailey, and 25:30 US remarks by Chicago Fed President Goolsbee. Despite the decline in the German PMI, we will cautiously monitor the upside potential for the euro/yen pair, which has risen.

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