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, 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 EUR/JPY 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-MA has continued since early last month. Note that trading began with a gap down of approximately 1 yen during today’s Asian session, 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 first want to carefully assess currency strength and weakness, including the euro, at the start of the week.

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