Should we focus on the upside potential of the euro following its significant surge?
06.03.2025
- ECB Policy Rate and Statement Release
- Hao・Residential Construction Permit
In yesterday's U.S. trading session, the Canadian dollar saw a seesawing trend against the yen. The CAD/JPY pair traded between 103.030 and 104.264, fluctuating entirely within the range of the 20-period moving average on the hourly chart. A similar pattern 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 trading hours through U.S. trading hours, as 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 EUR/USD pair rose from 1.0603 to 1.0795. The uptrend along the 10-period moving average on the hourly chart continued. On the daily chart, the pair has posted three consecutive days of significant gains.
Today’s economic indicators include: Australia’s trade balance and housing construction permits at 9:30 a.m., the UK’s construction PMI at 6:30 p.m., the Turkish Central Bank’s (TCMB) policy rate and statement at 8:00 p.m., the ECB’s policy rate and statement at 10:15 p.m., Canada’s trade balance, U.S. initial jobless claims, and U.S. trade balance at 10:30 p.m.,at 10:45 PM, the 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.
Author: Keisuke Sakurai
