Should we wait and see where the euro is headed, given that the downside has been limited by an improvement in the German PMI?

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

In yesterday’s U.S. currency markets, the U.S. dollar fell against the euro despite the fact that the preliminary October PMI data released yesterday showed the composite index improving 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 Trends 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, Canada’s Retail Sales and U.S. Durable Goods Orders at 21:30, the U.S. University of Michigan Consumer Sentiment Index at 23:00, and remarks by Bank of England Governor Bailey at 24:20. With the euro’s downside limited by the improvement in the German PMI, we intend to cautiously monitor 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