Markets may be watching the euro’s upside potential following the ECB announcement

Markets may be watching the euro’s upside potential following the ECB announcement

06.06.2025

In yesterday’s U.S. currency markets, the Canadian dollar rose against the yen. The CAD/JPY pair climbed from 104.263 to 105.350. On the hourly chart, the price extended from the -2σ to the +3σ Bollinger Bands. On the 4-hour chart, the pair is forming higher highs while finding support at the 75-day moving average (MA). On the daily chart, it has already broken above the 20-day MA—which had previously crossed over—and is currently rising toward the 200-day exponential moving average (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, with the rise tracking the 20-period moving average (MA) on the hourly chart.On the daily chart, the 10-day moving average is acting as support, and the pair appears to be entering an uptrend.

Today’s economic indicators include the Japan Household Expenditure Survey and the Japan Economic Sentiment Index at 2:00 PM; Germany’s Industrial Production and Trade Balance, and the UK Halifax House Price Index at 3:00 PM; and France’sIndustrial Production, at 17:30: Eurozone 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 U.S. Federal Reserve Governor Bowman. We will closely monitor the euro’s upward momentum following the ECB announcement.

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