Will the euro regain strength following the ECB meeting? Keep an eye on price movements around the time of the data release.

Will the euro regain strength following the ECB meeting? Keep an eye on price movements around the time of the data release.

24.07.2025

In yesterday's U.S. trading session, the U.S. dollar continued to decline against the euro. The EUR/USD pair rose from 1.1711 to 1.1775. It surged from the -3σ to the +3σ levels on the hourly Bollinger Bands. On the 4-hour chart, the upward trend continues, supported by the 20-day moving average (MA), and on the daily chart, the pair has risen for four consecutive days. The candlestick, which had briefly fallen below the 20-day MA, has recovered.We will be watching for signs of whether the US dollar will continue to weaken during today’s US trading session.

European currencies saw the euro fluctuate against the yen after the preliminary July consumer confidence index for the eurozone, released yesterday, improved to -14.7 from -15.3 the previous month.The EUR/JPY pair traded between 171.377 and 172.736. Price action lacked direction near the 200-period simple moving average (SMA) on the hourly chart. Meanwhile, on the daily chart, the trend along the +2σ line of the Bollinger Bands is beginning to break down.

Today’s schedule includes remarks by RBA Governor Block at 12:05, the German GfK Consumer Confidence Survey at 15:00, German Manufacturing/Non-Manufacturing PMIs at 16:30, Eurozone Manufacturing/Services PMIs at 17:00, UK Manufacturing/Services PMIs at 17:30, and at 21:15, the EurozoneECB interest rate decision and statement, at 21:30 US Initial Jobless Claims and Canadian Retail Sales, at 21:45 ECB President Lagarde’s press conference, at 22:45 US PMI Purchasing Managers’ Index, at 23:00 US New Home Sales, and at 8:01 the following day the UK GFK Consumer Confidence Survey.We will need to pay close attention to price movements around the release of these indicators to see if the euro regains strength following today’s ECB meeting.