All eyes are on the euro’s direction at the end of the month

All eyes are on the euro’s direction at the end of the month

30.08.2021

Last weekend, the three major U.S. stock indices all rose, leading to a market rally characterized by higher stock prices, bond prices, and oil prices. Like the Dow Jones Industrial Average, the Russell 2000 also rose and currently stands at 2,277. U.S. bond yields have fallen across the board, including not only the 10-year Treasury but also the 5-year and 30-year Treasuries.

In the foreign exchange market, the euro is showing strength against the U.S. dollar, with the EUR/USD pair currently trading around 1.180.From a technical perspective, the pair has broken strongly above 1.178—near the 200-period SMA on the 4-hour chart—with a large bullish candle. If the upward trend continues, the next target will likely be around 1.189. However, the euro is losing momentum against the pound, and since a double top pattern appears to be forming on the 4-hour chart, we should remain cautious of a potential decline.

Today, the Swiss KOF Leading Index is scheduled for 4:00 PM, the German Consumer Price Index (flash estimate) for 9:00 PM,South Africa’s fiscal spending at 9:00 PM, Canada’s Q2 current account balance at 9:30 PM, U.S. pending home sales at 11:00 PM, the U.S. Dallas Fed Manufacturing Activity Index at 11:30 PM, and New Zealand’s building permits at 7:45 AM the following day. With only two trading days remaining in August, we will be watching closely to see if price movements emerge that could serve as a stepping stone toward the fall market.

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