Market participants are likely to closely monitor the euro's movements following the ECB's rate cut

Market participants are likely to closely monitor the euro's movements following the ECB's rate cut

13.12.2024

In the previous day's U.S. currency trading, the U.S. dollar extended its gains against the yen for the fourth consecutive day.The USD/JPY pair traded between 151.802 and 152.766. Price action remained near the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the uptrend continues, with the 20-period MA providing support on the downside. On the daily chart, the price has broken above the 200-period simple moving average (SMA), which had been acting as resistance. We will be watching closely to see if the pair will rise toward last month’s high after a retest.

Following yesterday’s ECB policy rate announcement, in which the policy rate was cut by 0.25 percentage points from 3.25% to 3.00%, the euro traded in a range against the yen.The EUR/JPY pair traded between 159.103 and 160.546. On the 4-hour chart, price action fluctuated around the 20-day moving average (MA). On the daily chart, the pair is currently attempting to break above the resistance line formed by the 20-day MA.

Today’s economic indicators include the Bank of Japan’s Tankan survey for Q4 at 8:50 a.m., the UK GfK Consumer Confidence Survey at 9:01 a.m., Japan’s Industrial Production at 1:30 p.m., and Germany’sTrade Balance at 4:00 PM, UK Monthly GDP, UK Manufacturing Output, and UK Trade Balance at 4:00 PM, France’s Consumer Price Index at 4:45 PM, Eurozone Industrial Production at 7:00 PM, and Canada’s Manufacturing Sales, U.S. Import Price Index, and Canada’s Capacity Utilization Rate at 10:30 PM. We will be closely monitoring the euro’s price movements following the ECB’s rate cut.