Attention is turning to whether the euro-dollar pair can recover after breaking below last year’s low
25.11.2024
- Singapore Consumer Price Index
- Germany's IFO Business Climate Index
In the U.S. currency markets last weekend, the U.S. dollar strengthened against the euro. The EUR/USD pair fell from 1.0496 to 1.0334, marking its third consecutive week of declines. Having already hit new lows for the year and broken through last year’s low, the pair has lost a significant support level; the next notable support level is around parity. We will be watching closely to see if the U.S. dollar loses momentum at the start of the week.
European currencies fell as the British pound weakened against the U.S. dollar following the release of UK October retail sales data on the 22nd, which showed a year-on-year decline from 3.9% in the previous month to 2.4%. The GBP/USD exchange rate fell from 1.2593 to 1.2487.The decline occurred as the pair encountered resistance at the 20-period moving average (MA) on the hourly chart. Similarly, on the 4-hour chart, the pair pulled back upon touching the 20-MA, and on the daily chart, the downtrend along the 10-MA continues.
Today, at 2:00 PM, Singapore’s Consumer Price Index and Japan’s Economic Sentiment Index will be released; at 4:00 PM, Turkey’s Capacity Utilization Rate; at 5:00 PM, Taiwan’s Industrial Production; and at 6:00 PM, Germany’sIFO Business Climate Index, at 7:30 PM UK MPC member Dingla’s remarks, at 10:30 PM US Chicago Fed National Activity Index, at 12:30 AM US Dallas Fed Manufacturing Activity Index, at 2:30 AM German Bundesbank President Nagel’s remarks, and at 3:00 AM US 2-year Treasury auction.We will be watching for signs of a recovery in the EUR/USD pair, which has broken below last year’s low.
Author: Keisuke Sakurai
