Should We Focus on the Upside Potential of the Euro, Which Has Seen a Significant Surge?
06.03.2025
- Europe: ECB Policy Rate and Statement Release
- Australian Housing Construction Permits
In U.S. trading the previous day, the Canadian dollar saw a back-and-forth movement against the yen. The CAD/JPY pair traded between 103.030 and 104.264, with price action remaining within the range of the 20-period moving average on the hourly chart throughout the session.A similar price pattern was observed on the 4-hour chart, and on the daily chart, the RSI rebounded from 30 and is currently trading 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 trading hours through U.S. trading hours, as the Eurozone’s January Producer Price Index (PPI)—released yesterday—improved year-over-year from the previous month’s 0.0% to 1.8%, significantly exceeding market expectations of 1.2%.The euro rose against the U.S. dollar from 1.0603 to 1.0795. The uptrend along the 10-period moving average 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 TCMB’s policy rate and statement at 20:00; the ECB’s policy rate and statement at 22:15; and Canada’strade balance, U.S. initial jobless claims, and U.S. trade balance; at 22:30, the EU’s Lagarde, ECB President, press conference and remarks by U.S. Philadelphia Fed President Harker; and at 24:00, the Canadian Ivey Purchasing Managers’ Index.We will be watching for upside potential in the euro, which has seen a significant surge.
Author: Keisuke Sakurai
