Will the market wait and see how much further the euro can rise?
19.03.2025
- Japan: Industrial Production
- European Consumer Price Index
In yesterday’s U.S. currency trading, 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 from 1.9% in the previous month to 2.6%. The CAD/JPY pair fell from 105.017 to 104.164. It dropped 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 the 50 level.
European currencies rose against the yen as the German ZEW Economic Sentiment Index for March, released yesterday, improved significantly from 26.0 in the previous month to 51.6, surpassing market expectations of 50.4.The EUR/JPY 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, customs-based trade balance, and industrial production at 8:50, the Bank of Japan’s policy rate decision and statement around 12:00, a press conference by BOJ Governor Ueda at 15:30, South Africa’s Consumer Price Index at 17:00, and the Eurozone’sCPI, South Africa’s Retail Sales and the U.S. MBA Mortgage Applications Index at 8:00 PM, U.S. Weekly Crude Oil Inventories at 11:30 PM, the U.S. FOMC policy rate decision and statement at 3:00 AM, and a press conference by U.S. Federal Reserve Chair Powell at 3:30 AM. I intend to cautiously monitor the upside potential of the euro, which has been rising.
Author: Keisuke Sakurai
