Attention on European currency movements following the release of the ECB meeting minutes

Attention on European currency movements following the release of the ECB meeting minutes

26.08.2021

Yesterday, the three major U.S. stock indices all extended their gains, creating a risk-on market characterized by rising stocks, interest rates, and oil prices. WTI crude oil rose to 67.7. Gold fell by about 150 pips during U.S. trading hours yesterday and is currently trading around $1,786. The yield on the 10-year U.S. Treasury note has recovered to 1.33%, indicating that bonds are being sold off.

Contrary to the weakening U.S. dollar, the euro has risen against the dollar in the foreign exchange market, breaking above the recent high of 1.176 on the hourly chart. Technically speaking, as the price is currently just below the 20-day moving average (MA) on the daily chart, we need to carefully assess whether it will pull back due to resistance from the 20-day MA. Meanwhile, the euro remains in a stalemate against the pound, another European currency, and is currently trading around 0.855.

Today’s economic indicators include the German GfK Consumer Confidence Survey at 3:00 PM, the release of the minutes from the ECB’s July Governing Council meeting at 8:30 PM, U.S. initial jobless claims and the revised U.S. second-quarter GDP at 9:30 PM,U.S. personal consumption at 23:30, U.S. weekly natural gas inventories at 24:00, the U.S. Kansas City Fed Manufacturing Activity Index at 26:00, and a U.S. 7-year Treasury auction. We intend to closely monitor the direction of U.S. interest rates, which have begun to rise again, and the trajectory of the U.S. dollar.

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