Markets May Wait and See How the Euro Performs as the Final Reading of the Eurozone Consumer Price Index Remains at 2.4%
20.01.2025
- Switzerland—Producer Import Prices
- Construction Output in Europe
In the U.S. currency market 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 upside surprise compared to the market forecast of +2.0% and a sharp rebound from the previous month’s -1.8%.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 (20MA) line, which it had previously broken below.
European currencies fell as the euro weakened against the U.S. dollar after 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-over-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 along the 20-day moving average (20MA) continues.
Today’s schedule includes Japan’s machine tool orders at 8:50, the UK’s 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’sIndustrial Production, at 16:00 Germany’s Producer Price Index, at 16:30 Switzerland’s Imported Producer Prices, at 17:30 Hong Kong’s Employment Statistics, at 19:00 the Eurozone’s Construction Output, and at 26:00 President Trump’s inaugural address.We will carefully monitor the euro’s movements, as the final reading of the Eurozone Consumer Price Index held steady at 2.4%.
Author: Keisuke Sakurai
