Attention Turns to the Euro’s Potential for Recovery After Continued Decline Against the U.S. Dollar

Attention Turns to the Euro’s Potential for Recovery After Continued Decline Against the U.S. Dollar

01.05.2025

In the U.S. currency market yesterday, the U.S. dollar rose against the yen despite the fact that the Chicago Purchasing Managers’ Index (PMI) for April, released yesterday, fell to 44.6 from 47.6 the previous month.The USD/JPY pair rose from 142.129 to 143.188. A reversal occurred after the price touched the 200-period SMA on the hourly chart. On the 4-hour chart, the price has recovered from the -2σ Bollinger Band to the centerline, while on the daily chart, it has been unable to surpass the recent high set two days ago.

European currencies fell as the euro weakened against the U.S. dollar following the release yesterday of preliminary German April Harmonized Index of Consumer Prices (HICP) data, which showed a year-over-year decline from 2.3% the previous month to 2.2%.The euro fell against the U.S. dollar for the second consecutive day, dropping from 1.1398 to 1.1317. On the 4-hour chart, the price has fallen just below the 75-period moving average (MA), and on the daily chart, it has broken below the 10-period MA support line.

Today’s economic indicators include the Australian Import Price Index and Australian Trade Balance at 10:30, the Japanese Consumer Sentiment Index at 14:00, UK Consumer Credit at 17:30, UK Money Supply at 17:30,UK Manufacturing PMI; at 20:30, US Challenger Layoffs; at 21:30, US Initial Jobless Claims; at 22:45, US PMI; and at 23:00, US Construction Spending and the US ISM Manufacturing Index.We will be watching for signs of a rebound in the euro, which has continued to decline against the U.S. dollar.