Concerns Over Further Declines in the Euro?

Concerns Over Further Declines in the Euro?

24.02.2025

In the U.S. currency market yesterday, the U.S. dollar fell against the yen. The USD/JPY pair dropped from 151.467 to 149.414. A downtrend has developed along the 10-period moving average on the hourly chart.On the 4-hour chart, the RSI fell below the oversold level of 30 to 20. On the daily chart, the price has fallen to the -2σ level of the Bollinger Bands. We will need to monitor price movements during U.S. trading hours to see if the U.S. dollar continues to decline.

European currencies fell against the yen as Germany’s January producer price index, released yesterday, came in at 0.5% year-over-year—down from 0.8% the previous month and below market expectations of 1.3%.The euro/yen pair fell from 157.863 to 156.320, finding resistance at the 10-period moving average on the hourly chart. On the 4-hour chart, the price has fallen to the -3σ level of the Bollinger Bands. However, during today’s Asian trading session, it has recovered to the upper 157-yen range.

Today’s schedule includes the Japan Consumer Price Index at 8:30, the UK GfK Consumer Confidence Survey at 9:01, the Malaysia Consumer Price Index at 13:00, the India Manufacturing/Services PMI at 14:00, UK Retail Sales at 16:00,at 4:45 PM, the French Business Sentiment Index; at 5:15 PM, the French Manufacturing/Services PMI; at 5:30 PM, the German Manufacturing/Services PMI; at 6:00 PM, the Eurozone Manufacturing/Services PMI; at 6:30 PM, the UKmanufacturing/services PMI at 16:45, UK retail sales at 17:15, German manufacturing/services PMI at 17:30, Eurozone manufacturing/services PMI at 18:00, UK manufacturing/services PMI at 18:30, Canadian retail sales at 22:30, U.S. PMI at 23:45, U.S. University of Michigan Consumer Sentiment Index at 24:00, and remarks by U.S. Federal Reserve Vice Chair Jefferson at 25:30.We will be watching to see if the USD/JPY pair, which has fallen for two consecutive days, will rebound.