Investors should keep an eye on the U.S. dollar’s movements against European currencies

Investors should keep an eye on the U.S. dollar’s movements against European currencies

19.08.2021

Yesterday, the three major U.S. stock indices all fell, resulting in a market environment characterized by falling stock prices, flat interest rates, and lower oil prices. The yield on the 10-year U.S. Treasury note remained flat in the 1.26% range, while gold failed to reach $1,800 and resumed its downward trend, currently trading in the $1,777 range.

In the foreign exchange market, the U.S. dollar has emerged as the strongest currency, with GBP/USD hitting a new low for the month, falling to 1.371. From a technical perspective, GBP/USD is declining as it faces resistance at the 20-period moving average (MA) on the 4-hour chart; since it has already fallen below the 20-period MA on the daily chart, caution is warranted regarding a potential downtrend for the time being. Similarly, AUD/USD is also falling and is currently trading around 0.719.

Today, the Swiss trade balance is scheduled for release at 3:00 PM Asia time, followed by U.S. initial jobless claims, the Canadian housing price index, and the Philadelphia Fed Business Outlook Index at 9:30 PM U.S. time. Additionally, the U.S. Leading Economic Index is set for release at 11:00 PM, and U.S. weekly natural gas inventories at 11:30 PM.We want to carefully assess how the U.S. dollar, which is showing signs of resuming its upward trend, will perform against European currencies.

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