Should we focus on the upside potential of the euro following its significant surge?

Should we focus on the upside potential of the euro following its significant surge?

06.03.2025

In yesterday’s U.S. trading session, the Canadian dollar saw mixed trading against the yen. The CAD/JPY pair traded between 103.030 and 104.264, with price action consistently hovering around the 20-period moving average on the hourly chart. Similar price action was observed on the 4-hour chart, while on the daily chart, the RSI rebounded from 30 and is currently hovering around 35. We will wait and see if there are any changes in the strength of the Canadian dollar during U.S. trading hours.

European currencies saw the euro emerge as the strongest currency from European to U.S. trading hours after the Eurozone’s January Producer Price Index (PPI), released yesterday, improved to 1.8% year-over-year from the previous month’s 0.0%, significantly exceeding market expectations of 1.2%.The euro rose against the U.S. dollar from 1.0603 to 1.0795. The upward trend along the 10-period moving average (MA) on the hourly chart continued. On the daily chart, the currency has posted three consecutive days of significant gains.

Today’s economic indicators include: Australia’s trade balance and housing construction permits at 9:30; the UK’s construction PMI at 18:30; the Turkish Central Bank’s (TCMB) policy rate and statement at 20:00; the ECB’s policy rate and statement at 22:15; Canada’s trade balance, U.S. initial jobless claims, and U.S. trade balance at 22:30;at 10:45 PM: ECB President Lagarde’s press conference and remarks by Harker, President of the Philadelphia Fed; and at 12:00 AM: the Canadian Ivey PMI. We will be watching for upside potential in the euro, which has seen a significant surge.

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