With German CPI data showing a slowdown, investors should watch the euro’s direction as it faces resistance

With German CPI data showing a slowdown, investors should watch the euro’s direction as it faces resistance

01.10.2024

In yesterday’s U.S. trading session, the Canadian dollar strengthened. The CAD/JPY pair rebounded from 104.857 to 106.343. The hourly RSI rose from the oversold level of 30 to 62.On the 4-hour chart, the pair has already broken above the 200-period SMA resistance line, and on the daily chart, it is beginning to form higher lows. We will need to monitor price action during European trading hours to see if the Canadian dollar’s momentum continues.

European currencies fell as the euro weakened against the U.S. dollar following yesterday’s release of Germany’s September consumer price index, which showed a year-over-year decline from 1.9% in the previous month to 1.6%.The EUR/USD pair fell from 1.1209 to 1.1113. On the hourly chart, it plummeted from above the 20-period moving average (MA) to below it. Although the 4-hour chart continues to show higher highs, the daily chart has seen a series of bearish candles with upper shadows, so we should remain cautious about a potential weakening of the euro during U.S. trading hours.

Today’s schedule includes Japan’s employment statistics at 8:30, the Bank of Japan’s Tankan survey at 8:50, South Korea’strade balance at 9:30, Indonesia’s Manufacturing PMI at 9:30, Switzerland’s Manufacturing PMI at 16:30, Eurozone Manufacturing PMI at 17:00, UK Manufacturing PMI at 17:30, Eurozone Consumer Price Index (HICP) at 18:00,22:45 US PMI Purchasing Managers' Index, 23:00 US ISM Manufacturing Index, US JOLTS Job Openings, 24:00 US Bostic: Atlanta Fed President remarks, 24:10 US Cook: Fed Governor remarks, and 24:15 Switzerland: Schroeder, new SNB Governor remarks.With the euro facing resistance due to softer-than-expected German CPI data, we should pay close attention to its direction.

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