Markets may be watching the direction of the euro following the rise in the consumer price index

Markets may be watching the direction of the euro following the rise in the consumer price index

04.02.2025

In yesterday’s U.S. currency trading, the U.S. dollar weakened against the yen. The USD/JPY pair fell from 155.868 to 154.019. The upward trend along the 20-period moving average (MA) on the hourly chart has reversed. On the 4-hour chart, the pair is facing resistance at the 75-period MA, while on the daily chart, the downward trend along the 20-period MA continues. We will need to monitor price movements during U.S. trading hours to see if the U.S. dollar continues to weaken against the yen.

European currencies rose against the yen after preliminary data released yesterday showed that the Eurozone’s January Harmonized Index of Consumer Prices (HICP) rose to 2.5% year-on-year, up from 2.4% the previous month. The euro/yen pair rose from 157.962 to 160.174. 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 candlesticks have fallen to the -3σ level of the Bollinger Bands.

Today’s key economic indicators include New Zealand housing permits at 6:45 a.m., Japan’s monetary base at 8:50 a.m., France’s government spending at 4:45 p.m., U.S. JOLTS job openings, U.S. manufacturing orders, and U.S. durable goods orders at midnight, remarks by Bostic, President of the Atlanta Fed, at 1:00 a.m., and remarks by Daily, President of the San Francisco Fed, at 4:00 a.m.San Francisco Fed President’s remarks, and at 6:45 the following day, New Zealand’s Q4 Unemployment Rate. I want to carefully assess the direction of the euro following the rise in the Consumer Price Index.

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