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

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

29.05.2025

In U.S. currency trading the previous day, the Canadian dollar rose against the yen. The CAD/JPY pair rose from 104.186 to 104.958. It moved from below the 20-period moving average (MA) on the hourly chart 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 moving average 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, candlesticks fell from the +3σ to the -3σ levels of the Bollinger Bands. On the daily chart, the pair recorded its second consecutive day of declines.

Today, Japan’s foreign and domestic securities investment figures will be released at 8:50, followed by New Zealand’sANZ Business Confidence Index, at 14:00 Japan’s Consumer Sentiment Index, at 18:00 remarks by BOE Deputy Governor Breeden, at 18:30 South Africa’s Producer Price Index, at 21:30 U.S. Initial Jobless Claims and Canada’s Current Account,U.S. Real GDP, and U.S. Personal Consumption; at 23:00, the U.S. Existing Home Sales Pending Index; at 23:40, remarks by U.S. Chicago Fed President Goolsbee; and at 26:00, a U.S. 7-year Treasury auction.We intend to cautiously monitor the euro’s potential for recovery after its decline against the U.S. dollar.