Market participants are keeping a close eye on the euro's upside potential

Market participants are keeping a close eye on the euro's upside potential

28.05.2025

In yesterday's U.S. currency trading, the Canadian dollar rose against the yen. The CAD/JPY pair climbed from 103.529 to 104.974. It moved from below the 20-period moving average on the hourly chart to above it.On the 4-hour chart, the candlesticks have risen to the +3σ level of the Bollinger Bands, and on the daily chart, the price has found support at the lower end and is showing signs of a rebound. We will need to monitor price movements during U.S. trading hours to see if the Canadian dollar continues to break new highs.

European currencies rose, with the euro gaining against the Australian dollar after the Eurozone’s May business sentiment index, released yesterday, improved to 94.8 from 93.6 the previous month.The EUR/AUD pair rose from 1.7526 to 1.7627. The rise followed the 10-period moving average (MA) on the hourly chart. On the 4-hour chart, the price has moved from below the 20-period MA to above it, while on the daily chart, it is currently searching for direction just below the 20-period MA.

Today’s schedule includes remarks by Bank of Japan Deputy Governor Himinono at 9:00, Australia’s Consumer Price Index at 10:30, the RBNZ’s policy rate decision and statement at 11:00, RBNZ Governor Hawksby’s press conference at 12:00, and Germany’semployment statistics, the U.S. MBA Mortgage Applications Index at 8:00 PM, the Richmond Fed Manufacturing Index at 11:00 PM, a U.S. 5-year Treasury auction at 2:00 AM, and the release of the FOMC minutes at 3:00 AM. We will carefully assess the upside potential of the euro, which has been rising.