Should we watch for further gains in the euro against the dollar?

Should we watch for further gains in the euro against the dollar?

26.05.2025

Last weekend, the Canadian dollar fluctuated against the yen following the release of Canada’s March retail sales data on the 23rd, which showed a recovery from a 0.4% decline to a 0.8% increase. The CAD/JPY pair traded between 102.998 and 103.943, with price action straddling the 20-period moving average (MA) on the hourly chart.On the 4-hour chart, the pair remains range-bound within a cluster of short- and long-term moving averages, while on the daily chart, it is currently searching for direction below the 20-day moving average.

European currencies rose as the euro strengthened against the U.S. dollar following Friday’s release of Germany’s first-quarter real GDP, which improved from a year-over-year decline of 0.2% to 0.0%.The EUR/USD pair rose from 1.1276 to 1.1375. On the hourly chart, the price moved from below the 20-period moving average (MA) to above it. On the 4-hour chart, the price rebounded after touching the 20-period MA, and on the daily chart, the RSI has recovered to 60.

Today’s key events include the release of Japan’s Economic Sentiment Index at 2:00 PM, remarks by German Bundesbank President Nagel at 10:30 PM, and remarks by ECB President Lagarde at 11:30 PM. Please note that markets in the U.S. and the U.K. will be closed today due to public holidays. I intend to closely monitor the euro/dollar pair to see if it can sustain its recent gains.

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