Should we keep an eye on the direction of European currencies?

Should we keep an eye on the direction of European currencies?

05.07.2021

Last weekend, the three major U.S. stock indices all rose, leading to a market environment characterized by rising stock prices, a weaker U.S. dollar, and lower interest rates. The yield on the 10-year U.S. Treasury note has fallen below the low recorded at the end of last month and currently stands at 1.42%. Gold’s upward momentum has slowed, and it is currently trading in the $1,786 range.

In the foreign exchange market, cross-yen pairs are forming higher lows on the daily chart, creating a situation where caution is needed to determine whether they will resume their upward trend. While GBP/JPY is forming higher lows, it is also forming lower highs, and with the pair consolidating around the 153.5 level, caution is warranted. Key data points to watch include tomorrow’s German ZEW Economic Sentiment Index and Friday’s UK Industrial Production figures.

Today’s economic indicators include Turkey’s Consumer Price Index and Producer Price Index at 4:00 PM CET, France’s Services PMI at 4:50 PM CET, Germany’s Services PMI at 4:55 PM CET, the Eurozone’s Services PMI at 5:00 PM CET, and the UK’s Services PMI at 5:30 PM CET; no other notable economic releases are scheduled.Since all U.S. markets are closed today for the Independence Day holiday, we should remain vigilant for reduced volatility in the foreign exchange market while closely monitoring price movements.

Past Market Reports

1. 20.04.2026New

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

2. 17.04.2026New

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

3. 16.04.2026New

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

4. 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

5. 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?

6. 13.04.2026

   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. 10.04.2026

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

8. 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?

9. 08.04.2026

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

10. 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