All eyes are on whether the euro’s weakness against the yen will continue

All eyes are on whether the euro’s weakness against the yen will continue

01.10.2025

In the U.S. currency market yesterday, the U.S. dollar hit its lowest level during U.S. trading hours after the Chicago PMI for September, released yesterday, came in at 40.6—below the market forecast of 43.2.The EUR/USD pair rose from 1.1712 to 1.1761, rebounding from the -2σ level of the hourly Bollinger Bands. On the 4-hour chart, the 200-period SMA is acting as a support level, while on the daily chart, the pair is currently attempting to break above the 20-period MA.

European currencies fell against the yen after yesterday’s release of Germany’s September employment statistics showed that the number of unemployed rose to 14,000 from the market forecast of 7,000.The EUR/JPY pair fell from 174.420 to 173.400. A downtrend has emerged along the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the price is moving along the -2σ line of the Bollinger Bands, and on the daily chart, the price has broken below the 20-period MA line, which had previously served as support.

Today’s economic indicators include New Zealand housing permits at 6:45, the Bank of Japan’s Tankan survey at 8:50, the UK Nationwide House Price Index at 15:00, the German Manufacturing PMI at 16:55, the Eurozone Manufacturing PMI at 17:00, the UK Manufacturing PMI at 17:30, and the EurozoneCPI, 6:55 PM UK MPC Member Remarks, 8:00 PM US Mortgage Applications, 9:15 PM US ADP Employment Report, 10:45 PM US PMI Purchasing Managers' Index, 11:00 PM US ISM Manufacturing Index and US Construction Spending, and 11:30 PM US Weekly Crude Oil Inventories.We will closely monitor whether the euro’s weakness against the yen continues.

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