Markets may be waiting to see how the euro reacts after the final reading of the Eurozone Consumer Price Index held steady at 2.4%

Markets may be waiting to see how the euro reacts after the final reading of the Eurozone Consumer Price Index held steady 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% decline 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 December Harmonized Index of Consumer Prices (HICP) for the Eurozone, 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 remained at 2.4%.