Should we focus on the upside potential of European currencies?
07.09.2021
- Germany's ZEW Economic Sentiment Survey
- Europe: Second-Quarter GDP (Final Figures)
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 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 market 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.
Author: Keisuke Sakurai
