Attention may turn to currency strength and weakness, including the euro, at the start of the week
21.07.2025
- UK Lightmove House Prices
- Prices of Agricultural and Industrial Products
Last weekend, the U.S. dollar weakened alongside the Japanese yen. The EUR/USD pair rose from 1.1591 to 1.1671, moving upward along the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, it recovered from the 200-period simple moving average (SMA) line, which it had previously broken below, and retraced to the 75-period MA. Meanwhile, on the daily chart, the pair has been consolidating at the same level for about four trading days, searching for direction.
Despite the fact that Germany’s June Producer Price Index (PPI), released on the 18th, worsened year-over-year from -1.2% in the previous month to -1.3%, the euro rose against the yen.The euro/yen pair rose from 172.169 to 173.106. The rise followed the 10-period moving average (MA) on the hourly chart. On the daily chart, as on the hourly chart, the upward trend along the 10-period MA has continued since early last month. Note that trading in Asian hours today opened with a gap down of about 1 yen, so caution is advised regarding price movements during European trading hours.
Today’s economic indicators include New Zealand’s Consumer Price Index at 7:45 a.m., the UK’s Rightmove House Price Index at 8:01 a.m., Canada’s Industrial Product Prices and Raw Materials Price Index at 9:30 p.m., the U.S. Leading Economic Index at 11:00 p.m., and New Zealand’s Trade Balance at 7:45 a.m. the following day. With the ECB’s policy rate decision coming up this week, we’ll first want to carefully assess currency strength and weakness—including that of the euro—at the start of the week.
Author: Keisuke Sakurai
