Should we keep an eye on the balance of power between the euro and the U.S. dollar?

Should we keep an eye on the balance of power between the euro and the U.S. dollar?

12.04.2021

Last weekend, U.S. stock prices rose toward the close, resulting in a market environment characterized by rising stocks, a weaker dollar, and flat interest rates. Crude oil also saw little movement, trading at $59.30, just shy of $60, while gold, which had rebounded earlier, fell during today’s Asian trading session, returning to the $1,730 range. Trading volume remains light as the market as a whole searches for direction.

The foreign exchange market opened without a gap, with cross-yen pairs coming under selling pressure, resulting in a general trend toward yen buying. USD/JPY is currently trading around 109.5. From a technical perspective, if it closes below the 20-day moving average (MA) of 109.3, there is a risk that the market could shift from a corrective decline to a full-fledged downtrend, so caution is warranted. However, the euro is weaker than the dollar, with EUR/USD falling to 1.18 and testing lower levels.

Today’s schedule includes Turkey’s current account balance and unemployment rate at 4:00 PM, Eurozone retail sales at 6:00 PM, remarks by MPC member Tenreyro of the Bank of England at 10:00 PM, a U.S. 3-year Treasury auction at 12:30 AM, and a U.S. 10-year Treasury auction at 2:00 AM.This week, with the New Zealand policy rate and the Eurozone trade balance on the schedule, we will be closely monitoring which direction the US dollar and European currencies will take.

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