Will the market wait and see how much the euro can recover after its decline against the U.S. dollar?
29.05.2025
- Canada's Current Account Balance
- NZ/ANZ Business Confidence
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 we see further upward movement 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 decline along the 20-period moving average (MA) on the hourly chart was observed. 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 Expenditures, at 11:00 PM: U.S. Existing Home Sales Index, at 11:40 PM: Remarks by U.S. Chicago Fed President Goolsbee, 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.
Author: Keisuke Sakurai
