Will the Market Wait and See How Far the Euro Can Rise?
19.03.2025
- Japan: Industrial Production
- European Consumer Price Index
In the U.S. currency market yesterday, the Canadian dollar weakened against the yen despite the release of Canada’s February Consumer Price Index (CPI), which showed a year-over-year increase of 2.6%, up from 1.9% the previous month. The CAD/JPY pair fell from 105.017 to 104.164.It fell from the +2σ to the -2σ levels on the hourly Bollinger Bands. On the 4-hour chart, the 200 EMA acted as a resistance level, causing the candlesticks to pull back. On the daily chart, the RSI is stagnating around 50.
The euro rose against the yen as the German ZEW Economic Sentiment Index for March, released yesterday, improved significantly from 26.0 the previous month to 51.6, exceeding market expectations of 50.4.The euro/yen pair rose from 162.808 to 164.173. A trend has emerged along the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, prices are rising along the 10-period MA, and on the daily chart, the price has broken through the upper resistance zone of the 200-period simple moving average (SMA) with a real body candle.
Today’s schedule includes the Australian Westpac Leading Index at 8:30, Japan’s Machinery Orders at 8:50,Japan’s customs-based trade balance and industrial production, the BOJ’s policy rate and statement around 12:00, a press conference by BOJ Governor Ueda at 15:30, South Africa’s Consumer Price Index at 17:00, the Eurozone’sConsumer Price Index, at 20:00 South Africa’s Retail Sales and the U.S. MBA Mortgage Applications Index, at 23:30 U.S. Weekly Crude Oil Inventories, at 27:00 the U.S. FOMC policy rate decision and statement, and at 27:30 a press conference by U.S. Federal Reserve Chair Powell.I intend to cautiously monitor the upside potential of the euro, which has been rising.
Author: Keisuke Sakurai
