Market Participants May Keep a Close Eye on the Euro’s Upside Potential Following the ECB Announcement
06.06.2025
- Canada: Employment Statistics
- Germany: Industrial Production
In U.S. currency trading the previous day, the Canadian dollar rose against the yen. The CAD/JPY pair rose from 104.263 to 105.350. The price extended from the -2σ to the +3σ levels of the hourly Bollinger Bands.On the 4-hour chart, the pair is forming higher highs while finding support at the 75-MA. On the daily chart, it has already broken above the 20-MA—which had previously crossed over—and is currently rising toward the 200-EMA.
European currencies rose after yesterday’s ECB policy rate announcement. Although the policy rate was cut by 0.25%, the ECB stated that “inflation returning to 2% is a positive development,” and the market interpreted this as a signal that rate cuts would pause, causing the euro to rise following the announcement.The EUR/USD pair rose from 1.1403 to 1.1494. The rise followed the 20-period moving average (MA) on the hourly chart. On the daily chart, the 10-period MA is acting as support, and the pair appears to be entering an uptrend.
Today’s economic indicators include the Japan All-Household Household Expenditure Survey and the Japan Economic Sentiment Index at 14:00; Germany’s Industrial Production and Trade Balance, and the UK’s Halifax House Price Index at 15:00; and France’sIndustrial Production; at 17:30, remarks by ECB President Lagarde; at 18:00, Eurozone Real GDP and Eurozone Retail Sales; at 21:30, U.S. Employment Report and Canadian Employment Report; and at 23:00, remarks by Fed Governor Bowman.We will carefully monitor the euro’s upside potential following the ECB announcement.
Author: Keisuke Sakurai
