Should we be wary of the euro's strength?

Should we be wary of the euro's strength?

19.05.2021

Yesterday, stock prices continued to fall in the U.S. market, resulting in a scenario of falling stock prices, a weaker U.S. dollar, and flat interest rates. The fear index (VIX) rose above 20 to 21.3. The yield on the 10-year U.S. Treasury note remained flat, settling in the 1.64% range. Additionally, Bitcoin plummeted to the $43,000 range.

In the foreign exchange market, the euro/yen pair hit a new high for the year during today’s Asian trading session and is currently trading around 133.26. From a technical perspective, the pair has already broken above the weekly resistance line, and with the next key level around 134.5, traders should pay close attention to today’s economic indicators to gauge the market’s direction.

Today’s schedule includes the UK Consumer Price Index, UK Retail Sales, and UK Producer Price Index at 3:00 PM; the Eurozone Consumer Price Index (final reading) at 6:00 PM; South African Retail Sales and the US MBA Mortgage Applications Index at 8:00 PM; the Canadian Consumer Price Index and Canadian House Price Index at 9:30 PM; and at 11:00 PM, remarks by US Federal Reserve Bank of St. Louis PresidentSt. Louis Fed President’s remarks at 11:30 PM, U.S. weekly crude oil inventories at 12:35 AM, U.S. Atlanta Fed President Bostic’s remarks at 2:00 AM, a U.S. 20-year Treasury auction at 3:00 AM, and the release of the U.S. FOMC April meeting minutes at 4:00 AM. We will continue to monitor the situation cautiously to see if there are any significant changes in currency strength midway through the week.

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