Should we wait and see how far the euro can rise after strengthening against the Japanese yen?
22.07.2025
- Richmond Fed Manufacturing Index
- UK Public Sector Net Debt
In yesterday's U.S. currency trading, the U.S. dollar fell against the euro. The EUR/USD pair rose from 1.1614 to 1.1713. On the hourly chart, the price moved from below the 20-period moving average (MA) to above it. On the 4-hour chart, the price has extended to the +3σ level of the Bollinger Bands, and on the daily chart, the price has broken above the 20-period MA—which had previously acted as resistance—with a real body candle. We will be watching for signs of whether the U.S. dollar's weakness will continue during today's European trading session.
Among European currencies, the euro showed strength, following the Japanese yen. The EUR/AUD pair rose from 1.7835 to 1.7929. The rise followed the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the price has extended to the +2σ level of the Bollinger Bands, and on the daily chart, it has continued to rise for four consecutive days, trading above the 20-period MA. We will be closely monitoring whether the euro maintains its momentum during today’s U.S. trading session.
Today’s economic indicators include the release of the RBA minutes at 10:30, UK public sector net debt at 15:00,a speech by Bank of England Governor Bailey at 6:15 PM, a speech by Federal Reserve Chair Powell at 9:30 PM, the Richmond Fed Manufacturing Index at 11:00 PM, and a speech by Federal Reserve Vice Chair Bowman at 2:00 AM. We will cautiously monitor the upside potential of the euro, which has been strengthening following the Japanese yen.
Author: Keisuke Sakurai
