Market participants are likely to wait and see whether the euro, which fell on the back of lower Eurozone HICP data, has room to rebound

Market participants are likely to wait and see whether the euro, which fell on the back of lower Eurozone HICP data, 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 candlesticks have 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 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 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 will cautiously monitor the euro for potential rebound opportunities following its decline due to the drop in the Eurozone HICP.