Concerns over the euro's downward trend amid a rise in the consumer price index

Concerns over the euro's downward trend amid a rise in the consumer price index

04.03.2026

In yesterday’s U.S. currency markets, the U.S. dollar rose against the euro. The EUR/USD pair fell from 1.1705 to 1.1532. The decline occurred as the pair encountered resistance at the 10-period moving average on the hourly chart. On the 4-hour chart, the pair continued to move along the -2σ line of the Bollinger Bands, while on the daily chart, the price broke below the 200-period simple moving average support line with a real body candle, setting a new year-to-date low.

Despite the fact that the Eurozone’s February Harmonized Index of Consumer Prices (HICP), released yesterday, rose by 0.2 percentage points year-over-year to 1.9% from the previous month’s 1.7%, the euro fell against the pound. The EUR/GBP pair dropped from 0.8739 to 0.8690. It reversed lower after encountering resistance at the 200-period simple moving average (SMA) on the hourly chart.On the 4-hour chart, the price has already broken below the 200-SMA support line, and on the daily chart, the candlesticks are falling below the 20-MA, which had previously provided support.

Today’s economic indicators include Australia’s Q4 GDP at 9:30, Switzerland’s Consumer Price Index at 16:30, France’s Non-Manufacturing PMI at 17:50, Germany’s Non-Manufacturing PMI at 17:55, the Eurozone’s Non-Manufacturing PMI at 18:00,remarks by SNB Vice Chairman Martin at 6:30 PM, UK Non-Manufacturing PMI at 6:30 PM, Eurozone Producer Price Index and Eurozone Unemployment Rate at 7:00 PM, US MBA Mortgage Applications Index at 9:00 PM, US ADP Employment Report at 10:15 PM, Canada Q4 Labor Productivity Index at 10:30 PM, US Non-Manufacturing PMI at 11:45 PM,12:00 AM: U.S. ISM Non-Manufacturing PMI, 12:30 AM: Remarks by BOC Governor McClem, and U.S. weekly crude oil inventories are scheduled. We should remain cautious about the euro’s downside potential, even as the rise in the Consumer Price Index has moderated.

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