Should we focus on the balance of Western currencies?

Should we focus on the balance of Western currencies?

31.08.2021

Yesterday, two major U.S. stock indices rose, resulting in a market environment characterized by higher stock prices, lower interest rates, and flat crude oil prices. The Dow Jones Industrial Average continued to trade sideways near its highs, closing at $35,399, down 0.16% from the previous day. The Semiconductor Index (SOX) traded higher and currently stands at 3,446.

The yield on the 10-year U.S. Treasury note has been trending lower, and as a result, the euro has risen against the U.S. dollar during today’s Asian trading session, climbing from 1.178 to 1.182. From a technical perspective, the pair has already broken above the 200-day moving average on the 4-hour chart, and the next target around 1.189 will likely serve as a key level. With the U.S. jobs report due this weekend, we will first be watching for price movements leading up to the release.

Today, during European trading hours, the French Consumer Price Index (flash estimate) will be released at 15:45, followed by Turkey’s trade balance at 16:00, Germany’s unemployment rate at 16:55, UK mortgage approvals at 17:30, and the Eurozone Consumer Price Index (flash estimate) at 18:00.during U.S. trading hours: Canada’s GDP at 21:30, the U.S. S&P/Case-Shiller Home Price Index at 22:00, the U.S. Chicago PMI at 22:45, and the U.S. Consumer Confidence Index at 23:00. I want to carefully assess whether today’s U.S. economic data releases will clarify the balance between the U.S. dollar and the euro.

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