Will U.S. Housing Data and the German IFO Index Provide Insights into the Euro's Strength?

Will U.S. Housing Data and the German IFO Index Provide Insights into the Euro's Strength?

24.06.2026

In the U.S. currency market the previous day, the preliminary June Purchasing Managers’ Index (PMI) showed that the manufacturing PMI rose to 55.7 from 55.1 the previous month, reaching its highest level since May 2022.The composite PMI also improved to 52.2 from 51.5 the previous month. Reflecting market expectations of a resilient U.S. economy and further interest rate hikes later this year, the U.S. dollar strengthened against major currencies.The USD/JPY pair traded within a range of 161.33 to 161.74 yen in the Tokyo session and was in the upper 161.40 yen range as of 5:00 p.m.The focus now is on whether the pair can hold around 161.50; resistance is likely around 162.00, while support is expected between 161.00 and 160.50.With the U.S. January–March current account balance and May new home sales data scheduled for release today, we will be watching to see if the U.S. dollar continues to trade at elevated levels.

European currencies remained under pressure, as the eurozone’s preliminary June composite PMI rose to 49.5 from 48.5 the previous month but remained below 50—the threshold separating economic expansion from contraction—leading to continued caution regarding the region’s economic outlook.In Germany in particular, the composite PMI fell to 48.0, with weakness in the services sector weighing on the market, causing the euro to trade with limited upside against the dollar.The euro-dollar pair traded within a range of 1.1410 to 1.1438 in the Tokyo session and was in the low 1.1410s as of 5:00 p.m.Resistance levels around 1.1450 to 1.1480 and support levels around 1.1400 to 1.1380 are likely to be closely watched, and the immediate focus will be on whether the pair can hold above the 1.1400 level.Germany’s June IFO Business Climate Index is scheduled for release today, and we will be watching the euro’s reaction during European trading hours.

Today’s economic indicators include Japan’s May Business Services Price Index at 08:50, Australia’s May Consumer Price Index (CPI) at 10:30, remarks by Bank of Japan Governor Kazuo Ueda at 15:40 (to be read by Deputy Governor Himino),the German IFO Business Climate Index for June at 17:00, the U.S. MBA Mortgage Applications Index at 20:00, the U.S. Current Account Balance for Q1 at 21:30, and U.S. New Home Sales for May at 23:00.In particular, the German IFO index during European trading hours and the U.S. current account balance and housing-related indicators during New York trading hours are likely to drive market sentiment, so we will carefully assess the direction of the U.S. dollar, the yen, and the euro.