Should We Wait and See How Much the Euro, Which Fell Due to a Decline in the Eurozone HICP, Will Rebound?

Should We Wait and See How Much the Euro, Which Fell Due to a Decline in the Eurozone HICP, Will Rebound?

02.09.2024

Last weekend, the Canadian dollar rose sharply against the U.S. dollar during U.S. trading hours. The CAD/JPY pair rose from 107.287 to 108.530. The hourly RSI surged from 43 to 80.On the 4-hour chart, the candlesticks have extended to the +3σ level of the Bollinger Bands, and on the weekly chart, a rebound is occurring near the 200 EMA. It will be interesting to see if the Canadian dollar can maintain this momentum into the beginning of the month.

European currencies fell against the U.S. dollar after the preliminary August Harmonized Index of Consumer Prices (HICP) for the eurozone, released on August 30, showed a year-over-year increase of 2.2%, down 0.4 percentage points from the previous month’s 2.6%.The euro fell against the U.S. dollar from 1.1094 to 1.1044. The 20-period moving average (MAP) on the hourly chart acted as a resistance level. On the daily chart, the price has pulled back from the +2σ Bollinger Band to the centerline.

Today’s schedule includes Japan’s second-quarter capital expenditure data at 8:50, Indonesia’s Manufacturing PMI, South Korea’s Manufacturing PMI, and Malaysia’s Manufacturing PMI at 9:30, Australia’s housing construction permits at 10:30,at 10:45 China’s Caixin Manufacturing PMI, at 1:00 p.m. Indonesia’s Consumer Price Index, at 3:30 p.m. Switzerland’s Manufacturing PMI, at 4:50 p.m. Manufacturing PMI, at 4:55 p.m. Germany’sManufacturing PMI, 17:00: Eurozone Manufacturing PMI, and 17:30: UK Manufacturing PMI. We intend to cautiously monitor the euro for potential rebound opportunities following its decline due to the drop in the Eurozone HICP.