Will the market wait and see how much further the euro can rise after the ECB announcement?

Will the market wait and see how much further the euro can rise after the ECB announcement?

12.09.2025

Among U.S. currencies yesterday, the Canadian dollar was the second-weakest after the U.S. dollar. The USD/CAD pair fell from 1.3891 to 1.3825. On the hourly chart, the price dropped from the +2σ to the -3σ Bollinger Band.The 4-hour chart shows a similar price movement to the hourly chart. On the daily chart, the 200-day EMA is acting as a resistance level, capping price gains, and the candlesticks have reversed lower just short of last month’s high.

European currencies rose against the U.S. dollar after yesterday’s ECB policy rate announcement, in which the policy rate was kept at 2.0% as expected by the market, and ECB President Lagarde stated that the economies of the 20 eurozone countries were in “good shape.”The EUR/USD pair rose from 1.1659 to 1.1745. The hourly RSI rose from 36 to 69. On the 4-hour chart, the 200 EMA is acting as support, and prices are trending upward; on the daily chart, the uptrend along the 20 MA continues.

Today’s economic indicators include Japan’s Industrial Production at 1:30 PM, UK GDP, UK Industrial Production, UK Manufacturing Output, and UK Goods Trade Balance at 3:00 PM, Germany’s Consumer Price Index at 3:00 PM, France’s Consumer Price Index at 3:45 PM, remarks by German Bundesbank President Nagel at 5:45 PM, Canada’s Housing Starts at 9:30 PM,and at 23:00, Canada’s Q2 Capacity Utilization Rate and U.S. University of Michigan Consumer Sentiment Index. We intend to cautiously monitor the upside potential of the euro, which rose slightly following the ECB announcement.

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