With PPI also falling, will the market wait and see how much further the euro can rise?

With PPI also falling, will the market wait and see how much further the euro can rise?

04.09.2025

In yesterday’s U.S. trading session, the Canadian dollar hit its lowest level during U.S. hours after Canada’s second-quarter labor productivity fell to -1.0% from the previous reading of 0.2%. While other yen crosses rose, the CAD/JPY pair fell.It fell from 108.026 to 107.220. On the 4-hour chart, price action shows a regression from the +3σ Bollinger Band back toward the centerline, while on the daily chart, divergence is emerging as the RSI gradually declines.

Despite the fact that the Eurozone’s July Producer Price Index (PPI), released yesterday, fell to 0.2% year-on-year from 0.6% the previous month, the euro rose against the U.S. dollar.The EUR/USD pair rose from 1.1608 to 1.1679. On the hourly chart, the price moved from the -3σ to the +3σ Bollinger Bands. On the 4-hour chart, the price has broken above the 200-SMA line with a real body candle within a zone of converging moving averages, while on the daily chart, it remains within the range established last month, just below the 20-MA.

Today’s schedule includes Japan’s foreign and domestic securities investment data at 8:50, remarks by RBA Deputy Governor Hauser at 10:00, Australia’sTrade Balance, 5:30 PM UK Construction PMI, 6:00 PM Eurozone Retail Sales, 6:00 PM South Africa Current Account, 8:30 PM US Challenger Layoffs, 9:15 PM US ADP Employment Report, 9:30 PM US Initial Jobless Claims, US Trade Balance,U.S. PMI at 10:45 PM, U.S. ISM Non-Manufacturing Index at 11:00 PM, and remarks by U.S. Federal Reserve Bank of New York President Williams at 1:05 AM. Despite the decline in PPI, we intend to cautiously monitor the upside potential of the euro.

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