Will the market wait and see if the euro, which fell due to the decline in the Eurozone HICP, has room to rebound?

Will the market wait and see if the euro, which fell due to the decline in the Eurozone HICP, has room to rebound?

02.09.2024

In the U.S. currency markets last weekend, the Canadian dollar rose sharply during U.S. trading hours. The CAD/JPY pair climbed from 107.287 to 108.530. The hourly RSI surged from 43 to 80. On the 4-hour chart, the price has extended to the +3σ level of the Bollinger Bands, and on the weekly chart, a rebound has occurred near the 200-day EMA. It will be interesting to see if the Canadian dollar can maintain this momentum into the start 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 decline of 0.4 percentage points from the previous month’s 2.6% to 2.2%.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 line of the Bollinger Bands to the centerline.

Today’s schedule includes Japan’s Q2 capital expenditure 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 13:00 Indonesia’s Consumer Price Index, at 15:30 Switzerland’s Manufacturing PMI, at 16:50 the Manufacturing PMI, at 16:55 Germany’s Manufacturing PMI, at 17:00 the Eurozone Manufacturing PMI, and at 17:30 the UK Manufacturing PMI.We intend to cautiously monitor the potential for a rebound in the euro, which fell following the decline in the Eurozone HICP.

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