Market Participants to Keep a Close Eye on Euro Movements Following the ECB’s Rate Cut

Market Participants to Keep a Close Eye on Euro Movements Following the ECB’s Rate Cut

13.12.2024

In the U.S. currency market the previous day, 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, with price action centered around the 20-period moving average (MA) on the hourly chart.On the 4-hour chart, the uptrend continues, with the 20-period moving average (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, so we will be watching closely to see if it continues rising toward last month’s high after a retest.

Following yesterday’s announcement of the ECB’s policy rate decision—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 euro/yen pair traded between 159.103 and 160.546. On the 4-hour chart, the price moved back and forth across the 20-period moving average (MA). On the daily chart, the pair is currently attempting to break above the resistance line formed by the 20-period MA.

Today’s economic indicators include the Bank of Japan’s Tankan survey for the fourth quarter at 8:50, the UK GfK Consumer Confidence Survey at 9:01, Japan’s Industrial Production at 13:30, Germany’s Trade Balance at 16:00,at 4:00 PM: UK Monthly GDP, UK Manufacturing Output, and UK Trade Balance; at 4:45 PM: France’s Consumer Price Index; at 7:00 PM: Eurozone Industrial Production; and at 10:30 PM: Canada’s Manufacturing Sales, U.S. Import Price Index, and Canada’s Capacity Utilization Rate.We will be closely monitoring the euro’s price movements following the ECB’s rate cut.