Should We Keep an Eye on the Euro/Dollar’s Ability to Rebound 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 market last weekend, the U.S. dollar strengthened against the euro. The euro-dollar exchange rate fell from 1.0496 to 1.0334.This marked the third consecutive week of bearish candles. The pair has been continuously hitting new lows for the year, and having broken below last year’s low, it has lost a significant support level; the next notable support level is around parity. For now, we will be watching closely to see if the U.S. dollar loses momentum at the start of the week.
European currencies saw the pound fall against the U.S. dollar after the UK’s October retail sales figures, released on the 22nd, showed a year-over-year decline from 3.9% 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 rebounded upon touching the 20-period MA, and on the daily chart, the downtrend along the 10-period MA continues.
Today, at 14:00, Singapore’s Consumer Price Index and Japan’s Economic Sentiment Index will be released; at 16:00, Turkey’s Capacity Utilization Rate; at 17:00, Taiwan’s Industrial Production; and at 18:00, Germany’sIFO Business Climate Index, at 19:30 UK MPC Member Dingra’s remarks, at 22:30 US Chicago Fed National Activity Index, at 24:30 US Dallas Fed Manufacturing Activity Index, at 26:30 Germany’sremarks by Nagel, President of the German Federal Bank, and at 27:00, a U.S. 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
