Should we wait and see where the euro is headed, given that the downside has been limited by an improvement in the German PMI?
25.10.2024
- France: Consumer Confidence Index
- Total Retail Sales
In the U.S. currency market yesterday, the U.S. dollar fell against the euro despite the fact that the preliminary October PMI (Purchasing Managers' Index) released yesterday showed an improvement in the composite index from 54.0 in the previous month to 54.3, with both the services and manufacturing sectors exceeding their previous readings.The EUR/USD pair rose from 1.0770 to 1.0829. On the hourly chart, the price moved from below the 20-period moving average (MA) to above it. On the daily chart, the price is already trading above the 20-period MA.
European currencies saw the euro dip slightly against the yen after preliminary figures for Germany’s October services and manufacturing PMIs, released yesterday, both came in higher than the previous month. While declines in other yen crosses widened, the euro/yen pair remained within a range of 164.749 to 163.803, finding support at the 75-period moving average on the hourly chart.On the daily chart, the pair is currently searching for direction just below the 200-day SMA, so we will be watching price action during European trading hours.
Today’s schedule includes the UK GfK Consumer Confidence Survey at 8:01, Japan’s Tokyo Consumer Price Index at 8:30, Singapore’s Industrial Production and Japan’s Economic Sentiment Index at 14:00, France’s Consumer Confidence Index at 15:45, Turkey’s Capacity Utilization Rate at 16:00, Germany’s IFO Business Climate Index and Eurozone Money Supply at 17:00, and Russia’sKey Interest Rates, at 21:30: Canada – Retail Sales, US – Durable Goods Orders, at 23:00: US – University of Michigan Consumer Sentiment Index, and at 24:20: UK – Remarks by BOE Governor Bailey. With the euro’s downside limited by the improvement in the German PMI, we intend to cautiously monitor the currency’s direction.
Author: Keisuke Sakurai
