Will the market wait and see how the euro performs after the final reading of the Eurozone Consumer Price Index came in at 2.4%?

Will the market wait and see how the euro performs after the final reading of the Eurozone Consumer Price Index came in at 2.4%?

20.01.2025

Last weekend, the U.S. dollar rose against the yen after the U.S. December housing starts data, released on the 17th, came in at +15.8%—a significant improvement over the previous month’s -1.8% and well above the market forecast of +2.0%. The USD/JPY pair rose from 154.990 to 156.360, reaching the +3σ level of the hourly Bollinger Bands.On the daily chart, the price is returning to the 20-day moving average (MA) line, which it had previously broken below.

European currencies fell against the U.S. dollar as the final reading of the Eurozone’s December Harmonized Index of Consumer Prices (HICP), released on the 17th, remained unchanged from the previous month at 2.4% year-on-year.The euro fell against the U.S. dollar from 1.0309 to 1.0265. The hourly RSI dropped from 57 to 34. On the daily chart, the downtrend that began last October continues along the 20-day moving average.

Today’s schedule includes Japanese machine tool orders at 8:50, UK Rightmove house prices at 9:01, China’s prime lending rate at 10:00, Malaysia’s trade balance at 13:00, the Philippines’ balance of payments at 13:13,Japan’s Industrial Production at 1:30 PM, Germany’s Producer Price Index at 4:00 PM, Switzerland’s Imported Producer Prices at 4:30 PM, Hong Kong’s Employment Statistics at 5:30 PM, the Eurozone’s Construction Output at 7:00 PM, and President Trump’s Inaugural Address at 2:00 AM.We will closely monitor the euro’s movements, as the final reading of the Eurozone Consumer Price Index held steady at 2.4%.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed