With the euro-dollar exchange rate hitting a new low for the year and approaching last year’s low, investors should be wary of further downside potential.

With the euro-dollar exchange rate hitting a new low for the year and approaching last year’s low, investors should be wary of further downside potential.

14.11.2024

In yesterday's U.S. currency trading, the U.S. dollar rose against the euro following the release of the U.S. October CPI, which showed a 0.2-point increase. The EUR/USD pair fell from 1.0653 to 1.0554. It moved from above the 20-period moving average on the hourly chart to below it. Furthermore, during today's Asian trading session, the pair has continued to test lower levels and has already hit a new low for the year.

European currencies saw the euro fluctuate against the yen following the release of France’s third-quarter employment statistics yesterday, which showed the unemployment rate rising to 7.4% from the previous reading of 7.3%.The EUR/JPY pair traded between 163.630 and 164.803. Price action was seen straddling the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the 200-period simple moving average (SMA) is acting as support, while on the daily chart, the price has already broken below the 200-period SMA.

Today’s schedule includes Japan’s Domestic and Foreign Securities Investment at 8:50, the UK’s RICS House Price Index at 9:01, Australia’s Employment Report at 9:30, Thailand’s Consumer Confidence Index at 12:30, India’s Wholesale Price Index at 15:30, Sweden’s Consumer Price Index at 16:00, and the Eurozone’s Real GDP at 19:00,22:30: US Producer Price Index and Initial Jobless Claims; 23:00: Remarks by Barkin, President of the Richmond Fed; 25:00: US Weekly Crude Oil Inventories; 28:00: Remarks by Lagarde, ECB President; and 29:00: Remarks by Powell, Fed Chair.We should watch for further downside potential in the EUR/USD pair, which has hit a new low for the year and is approaching last year’s low.