Should we focus on the upside potential of European currencies?

Should we focus on the upside potential of European currencies?

07.09.2021

Although U.S. markets were closed yesterday for the Labor Day holiday, the yield on the 10-year U.S. Treasury note rose to 1.34%, indicating a trend toward higher interest rates. Gold continues to trade sideways around the $1,800 level and is currently hovering in the $1,821 range. BTC/USD rose slightly and remains in the $52,000 range.

With U.S. markets closed, there has been little significant movement in the foreign exchange market, and the EUR/USD pair has been fluctuating within a narrow range. The pair is currently trading around 1.187. From a technical perspective, the 20-period moving average (MA) on the 4-hour chart is providing support. However, if the pair rises again to around 1.189 and forms a double top, we should be wary of another decline, depending on how the U.S. dollar performs.

Today’s key economic indicators include German industrial production and UK Halifax house prices at 3:00 PM, remarks by MPC member Saunders at 4:30 PM, the German ZEW Economic Sentiment Survey and the Eurozone ZEW Economic Sentiment Survey at 6:00 PM, and the Eurozone Q2 GDP (final reading).South Africa’s Q2 GDP at 18:30, and the U.S. 3-year Treasury auction at 26:00. As we enter the autumn trading season in September, I intend to closely monitor the situation to see if there will be significant shifts in the relative strength of various currencies.

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