All eyes are on whether the weakened U.S. dollar will rebound

All eyes are on whether the weakened U.S. dollar will rebound

24.01.2025

In the U.S. currency market yesterday, the U.S. dollar weakened against the euro after the number of new U.S. unemployment insurance claims, released yesterday, rose slightly to 223,000 from the previous reading of 217,000.The EUR/USD pair rose from 1.0372 to 1.0437. On the hourly chart, the price has moved from below the 20-period moving average (MA) to above it. On the 4-hour chart, the 200-period simple moving average (SMA) has shifted from a resistance line to a support level. Meanwhile, on the daily chart, the pair is in the process of setting a new high for the month.

Among European currencies, the pound traded sideways against the yen. The GBP/JPY pair fluctuated between 192.273 and 192.996. The market lacked direction, trading above and below the 20-period moving average on the hourly chart.On the 4-hour chart, the uptrend continues, supported by the 10-period moving average, while on the daily chart, the pair has rebounded from the -3σ level of the Bollinger Bands.

Today’s schedule includes the Japan Consumer Price Index at 8:30, Singapore Industrial Production at 14:00, a press conference by Bank of Japan Governor Ueda at 15:30, France Manufacturing/Non-Manufacturing PMI at 17:15, and Germany Manufacturing/Non-Manufacturing PMI, at 18:00: Eurozone Manufacturing/Non-Manufacturing PMI, at 18:30: UK Manufacturing/Non-Manufacturing PMI, at 19:00: Remarks by ECB President Lagarde, and at 23:45: U.S. Manufacturing/Non-Manufacturing PMI at 23:45, U.S. Existing Home Sales at 24:00, and the University of Michigan Consumer Sentiment Index. We will be watching closely to see if the weakened U.S. dollar will stage a rebound.