Market participants may be waiting to see how much further the euro can rise against the U.S. dollar
16.09.2025
- U.S. Industrial Production
- Canada: Consumer Price Index
In yesterday’s U.S. trading session, the Canadian dollar reached its strongest level during U.S. hours after Canada’s July manufacturing sales, released yesterday, rebounded to 2.5% from 0.3% the previous month. The CAD/JPY pair rose for the third consecutive day, climbing from 106.455 to 107.054.The price rose without hesitation at the resistance line of the 200-period simple moving average (SMA) on the hourly chart. The 4-hour chart showed a similar price movement to the hourly chart, and on the daily chart, the 200-period SMA acted as a support line, causing the price to reverse. It is currently breaking above that level.
European currencies rose as the euro strengthened against the U.S. dollar following yesterday’s release of the EU’s July trade balance, which improved to €5.3 billion from €2.8 billion the previous month.The EUR/USD pair rose from 1.1716 to 1.1773. Prices were pushed higher while finding support at the 75-period moving average on the hourly chart. On the 4-hour chart, the candlesticks have extended to the +3σ level of the Bollinger Bands, and on the daily chart, prices have recovered to levels near this month’s high.
Today’s economic indicators include: Japan’s Tertiary Industry Activity Index at 1:30 PM, UK Employment Figures and UK ILO Unemployment Rate at 3:00 PM, Germany’s ZEW Economic Sentiment Index and Eurozone Industrial Production at 6:00 PM, Canada’s Housing Starts at 9:15 PM, and U.S. Retail Sales at 9:30 PM,Canada’s Consumer Price Index and U.S. Import Price Index at 21:30, U.S. Industrial Production at 22:15, U.S. Business Inventories and the NAHB Housing Market Index at 23:00, and a U.S. 20-year Treasury auction at 02:00. We will cautiously monitor the upside potential of the euro, which has been strengthening against the U.S. dollar.
Author: Keisuke Sakurai
