Attention may turn to European currencies ahead of the policy rate announcement

Attention may turn to European currencies ahead of the policy rate announcement

08.09.2021

Yesterday, the Dow Jones Industrial Average and the S&P 500 fell in U.S. markets, creating a risk-off sentiment characterized by falling stock prices, rising interest rates, and lower oil prices. WTI crude oil has pulled back from last week’s $70 range and is currently trading in the $68.9 range. Additionally, gold, which had been trading sideways around the key $1,800 level, has fallen and is currently trading in the $1,797 range.

Ahead of tomorrow’s policy rate announcement, the euro is trading lower in the foreign exchange market, with the EUR/USD pair falling from 1.188 to 1.183. The euro was also weak against the pound, another European currency, yesterday, completely erasing its gains during European trading hours and falling from 0.860 to 0.858.

Today’s schedule includes France’s trade balance at 15:45 (Asia time), remarks by RBA Deputy Governor Devel at 17:10 (Europe time), the BOC policy rate announcement and the U.S. JOLTS survey at 20:00 (Europe time), remarks by BOE Governor Bailey at 24:00 (U.S. time), the U.S. 10-year Treasury auction at 26:00,at 2:10 a.m. (US time), remarks by John Williams, President of the New York Fed; and at 3:00 a.m. (US time), the US Federal Reserve Beige Book. Ahead of tomorrow’s ECB policy rate announcement, we will carefully monitor how European currencies react.

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