Will the market wait and see how much room the euro has to recover after its decline against the U.S. dollar?

Will the market wait and see how much room the euro has to recover after its decline against the U.S. dollar?

29.05.2025

In yesterday’s U.S. trading session, the Canadian dollar rose against the yen. The CAD/JPY pair climbed from 104.186 to 104.958. On the hourly chart, the price moved from below the 20-period moving average (MA) to above it. On the 4-hour chart, the RSI has reached 70, and on the daily chart, the pair has risen for three consecutive days. It has broken above the 20-period MA and is recovering sharply. We will be watching to see if upward price movement continues during today’s U.S. trading session.

European currencies fell against the U.S. dollar after yesterday’s release of Germany’s May employment statistics showed that while the unemployment rate remained unchanged from the previous month at 6.3%, the number of unemployed rose to 34,000 from the market forecast of 10,000.The EUR/USD pair fell from 1.1345 to 1.1284. A downward trend was observed along the 20-period moving average on the hourly chart. On the 4-hour chart, the candlesticks fell from the +3σ to the -3σ levels of the Bollinger Bands. On the daily chart, the pair fell for the second consecutive day.

Today’s schedule includes Japan’s Foreign and Domestic Securities Investment at 8:50, New Zealand’s ANZ Business Confidence at 10:00, Japan’s Consumer Sentiment Index at 14:00, remarks by BOE Deputy Governor Breeden at 18:00, South Africa’s Producer Price Index at 18:30, U.S. Initial Jobless Claims and Canada’s Current Account at 21:30,U.S. Real GDP and U.S. Personal Consumption, at 11:00 PM U.S. Existing Home Sales Index, at 11:40 PM U.S. Remarks by Goolsbee, President of the Chicago Fed, and at 2:00 AM U.S. 7-Year Treasury Auction. I intend to cautiously monitor the potential for a recovery in the euro, which has fallen against the U.S. 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