Should we be wary of low volatility?

Should we be wary of low volatility?

05.04.2021

Although both European and U.S. markets were closed last weekend for holidays, crude oil rose to $61.00, and gold recovered to $1,725. In addition, following the release of last weekend’s U.S. employment report, both long-term and short-term U.S. interest rates rose significantly. Furthermore, Bitcoin, which had temporarily fallen to the 5.5 million yen range, has recovered to the 6.3 million yen range.

The foreign exchange market opened at the start of the week without a significant gap. While cross-yen pairs are showing a slight downward trend, overall volatility remains low, giving the impression of a modest decline rather than a sharp drop. During today’s Asian trading session, the Australian dollar, an Oceania currency, has emerged as the strongest currency, with the AUD/USD pair pushing higher around the 0.762 level.

Markets in Oceania, Europe, and China are closed today for public holidays, while U.S. markets are operating as usual.First, at 4:00 PM European time, Turkey’s Consumer Price Index and Producer Price Index will be released. Later, at 10:45 PM U.S. time, the final U.S. Services PMI is scheduled, followed by the U.S. ISM Non-Manufacturing Index and the U.S. Manufacturing Orders Index at 11:00 PM. We will closely monitor how the recent trends of rising stock prices, higher interest rates, and a weaker yen evolve this week.

Past Market Reports

1. 21.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

2. 20.04.2026New

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

3. 17.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

4. 16.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

5. 15.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

6. 14.04.2026

   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

7. 13.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

8. 10.04.2026

   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?

9. 09.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

10. 08.04.2026

    Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran