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 the U.S. currency market yesterday, 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 trade in a range 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 euro/yen 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 data at 8:50, the UK’s RICS Housing Price Index at 9:01, Australia’s employment statistics at 9:30, Thailand’s Consumer Confidence Index at 12:30, India’sWholesale Price Index, at 16:00 the Sweden Consumer Price Index, at 19:00 the Eurozone Real GDP, at 22:30 the U.S. Producer Price Index and U.S. Initial Jobless Claims, at 23:00 U.S. Barkin:Remarks by Richmond Fed President Barkin; at 25:00, U.S. weekly crude oil inventories; at 28:00, remarks by ECB President Lagarde; and at 29:00, remarks by Fed Chair Powell are scheduled.With the EUR/USD pair having hit a new low for the year and approaching last year’s low, investors should be mindful of the downside potential.