Should we keep an eye on shifts in the strength of the U.S. and European currencies?

Should we keep an eye on shifts in the strength of the U.S. and European currencies?

08.07.2021

Yesterday, the three major U.S. stock indices all rebounded, with the Dow Jones Industrial Average closing at $34,681, up 0.30% from the previous day. A report released yesterday by the OECD stated that "employment levels are not expected to return to pre-pandemic levels until late 2022," reinforcing the view that the economy is still in the midst of a recovery.

The yield on the 10-year U.S. Treasury note has fallen below 1.4% to 1.31%, returning to levels last seen in February, while the decline in the U.S. dollar has paused. Although GBP/USD rebounded during U.S. trading hours yesterday, it gave up all its gains and fell to this week’s low of 1.375. As GBP/USD continues to decline while being capped by the 75-period moving average on the 4-hour chart, we need to closely monitor whether this trend will continue.

Today’s key economic indicators include Swiss employment figures at 14:45 during Asian trading hours, Germany’s current account balance at 15:00, the results of the ECB’s monetary policy strategy review at 20:00 during European trading hours, U.S. initial jobless claims and a press conference by ECB President Lagarde at 21:30 during U.S. trading hours, and U.S. weekly crude oil inventories at 24:00.We intend to carefully monitor how the relative strength between European currencies and the U.S. dollar evolves.

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