Will the market wait and see how much further the euro can rise against the U.S. dollar?

Will the market wait and see how much further the euro can rise against the U.S. dollar?

05.03.2026

In yesterday’s U.S. currency trading, the U.S. dollar fell against the yen after the final figures for the U.S. February PMI Purchasing Managers’ Index, released yesterday, showed declines in both the non-manufacturing and composite indices compared to the previous month. The USD/JPY pair fell from 157.864 to 156.865, tracking a downward trend along the 20-period moving average on the hourly chart.On the 4-hour chart, the price has broken below the support line formed by the 20-period moving average with a real body candle, and on the daily chart, it has pulled back after touching the +2σ line of the Bollinger Bands.

European currencies rose against the U.S. dollar as the Eurozone’s January Producer Price Index (PPI), released yesterday, remained unchanged from the previous month at -2.1% year-on-year.The EUR/USD pair rose from 1.1575 to 1.1654. On the hourly chart, the price has moved from below the 20-period moving average (MA) to above it. On the 4-hour chart, the RSI has recovered to 37 after falling to 21, and on the daily chart, the 200-period exponential moving average (EMA) is acting as a support level, with the price currently rebounding.

Today’s economic indicators include Japan’s foreign and domestic securities investment at 8:50, Australia’s trade balance at 9:30, Switzerland’s unemployment rate at 17:00, the UK’s construction PMI at 18:30, Eurozone retail sales and remarks by German Bundesbank President Nagel at 19:00, and the US Challenger job cuts and Eurozonepublication of the ECB Governing Council minutes, 22:30 US Nonfarm Productivity Index, US Initial Jobless Claims, and US Import/Export Price Index, 24:30 US Weekly Natural Gas Inventories, 26:00 EU remarks by ECB President Lagarde, and 27:15 remarks by US Federal Reserve Vice Chair Bowman.We will wait and see how much upside potential the euro has after rebounding against the US dollar.

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