Attention May Turn to Currency Strength and Weakness, Including the Euro, at the Start of the Week

Attention May Turn to Currency Strength and Weakness, Including the Euro, at the Start of the Week

21.07.2025

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, the pair recovered from the 200-period simple moving average (SMA) line, which it had previously broken below, and retraced to the 75-period moving average (MA). Meanwhile, on the daily chart, the pair has been consolidating at the same level for about four trading days, searching for a clear direction.

European currencies saw the euro rise against the yen, even though Germany’s June Producer Price Index (PPI), released on the 18th, worsened to -1.3% year-over-year from -1.2% the previous month.The euro/yen pair rose from 172.169 to 173.106, with the rise tracking 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 the pair opened with a gap down of about 1 yen during today’s Asian session, so traders should remain cautious regarding price movements during the European session.

Today’s economic indicators include New Zealand’s Consumer Price Index at 7:45, the UK’s Rightmove House Price Index at 8:01, Canada’s Industrial Product Prices and Raw Materials Price Index at 21:30, the U.S. Leading Economic Index at 23:00, and New Zealand’s Trade Balance at 7:45 the following day.With the ECB policy rate decision coming up this week, we’ll first want to carefully assess currency strength and weakness—including the euro—at the start of the week.