Attention is turning to the euro’s potential for recovery after its continued decline against the U.S. dollar

Attention is turning to the euro’s potential for recovery after its 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 Chicago PMI for April, released yesterday, falling 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 simple moving average (SMA) on the hourly chart. On the 4-hour chart, the price has recovered from the -2σ line of the Bollinger Bands to the centerline, while on the daily chart, it has been unable to surpass the recent high set two days ago.

European currencies fell against the U.S. dollar as the preliminary April Harmonized Index of Consumer Prices (HICP) for Germany, released yesterday, showed a year-over-year decline from 2.3% in 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-day moving average (MA), and on the daily chart, it has broken below the 10-day MA support line.

Today’s economic indicators include the Australian Import Price Index and Trade Balance at 10:30, the Japanese Consumer Sentiment Index at 14:00, the UKUK Consumer Credit, 5:30 PM UK Money Supply and UK Manufacturing PMI, 8:30 PM US Challenger Layoffs, 9:30 PM US Initial Jobless Claims, 10:45 PM US PMI Purchasing Managers' Index, and 11:00 PM US Construction Spending and US ISM Manufacturing PMI.We will be watching for signs of a recovery in the euro, which has continued to decline against the US dollar.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed