Should we be watching the balance of power between the U.S. and Europe?

Should we be watching the balance of power between the U.S. and Europe?

07.04.2021

Yesterday, in a sharp reversal from the previous day, a risk-off sentiment took hold, characterized by falling stock prices, a weaker U.S. dollar, and lower interest rates. The decline in U.S. long-term interest rates—which had been rising recently—was particularly notable. Bonds were bought, with the yield on the 10-year U.S. Treasury note falling to 1.66%, and the 5-year U.S. Treasury note yield dropping to 0.87%. Crude oil remained flat, while gold traded around $1,730.

While cross-yen pairs had been trending upward recently, the USD, CAD, and GBP have been trending downward; the GBP/JPY pair, which had recently reached 153.4, has fallen by about 170 pips to 151.7. In contrast, the EUR/JPY pair has held steady and is trading around 130.2.

No major economic indicators are scheduled for release in Europe today. At 8:00 PM, the U.S. MBA Mortgage Applications Index will be released; at 9:30 PM, the Canada-U.S. trade balance; at 10:00 PM, remarks by U.S. Federal Reserve Bank of Chicago President Evans;Chicago Fed President’s remarks at 21:30, U.S. weekly crude oil inventories at 23:30, U.S. Richmond Fed President Barkin’s remarks at 25:00, U.S. San Francisco Fed President Daly’s remarks at 26:00, and the release of the U.S. FOMC minutes at 27:00.We will closely monitor how the U.S. dollar reacts to today’s release of the FOMC minutes.

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