Concerns Over Further Declines in the Euro Against the U.S. Dollar

Concerns Over Further Declines in the Euro Against the U.S. Dollar

10.10.2025

In the U.S. currency market yesterday, the Canadian dollar fell against the yen. The CAD/JPY pair dropped from 109.745 to 109.073. It fell within the Bollinger Bands on the hourly chart, ranging from +3σ to -3σ.On the 4-hour chart, the price has already broken below the 10-period moving average (MA) that had been providing support and is now testing the 20-period MA. On the daily chart, the RSI, which had risen to just shy of 70, has fallen to 63. On the weekly chart, a reversal is observed following a touch of the +3σ Bollinger Band.

Among European currencies, the euro fell against the U.S. dollar. The euro/dollar pair fell for the fourth consecutive day. The hourly RSI dropped from 57 to 22.On the 4-hour chart, the downtrend along the 20-period moving average (MA) continues, and on the daily chart, the price has fallen below the low set last month. Meanwhile, on the weekly chart, the price is positioned just below the 20-period MA, bringing the uptrend that has been in place since early this year to a critical juncture where it may come to an end.

Today’s key events include remarks by RBA Governor Block at 7:00, Japan’s Domestic Corporate Price Index at 8:50, remarks by San Francisco Fed President Daily at 10:40, Canada’s Employment Statistics at 21:30, and remarks by U.S. Fed Governor Goolsbee at 22:45:Chicago Fed President’s remarks at 22:45, the U.S. University of Michigan Consumer Sentiment Index at 23:00, and remarks by Musalem, President of the St. Louis Fed, at 26:00.Note that the fiscal balance report scheduled for today has been postponed due to the U.S. government shutdown. Investors should remain cautious regarding the downside potential for the euro, which has weakened against the U.S. dollar.