Caution Over German Election Results and the Direction of European Currencies

Caution Over German Election Results and the Direction of European Currencies

27.09.2021

Last weekend, the three major U.S. stock indices saw mixed performance, resulting in a market characterized by flat stock prices, lower interest rates, and higher oil prices. WTI crude oil rose to $75.13, hitting new highs for August and September and extending its winning streak to five days. Additionally, BTC/USD surged sharply, recovering to the $44,000 range.Gold continues to trade sideways and is currently hovering around the $1,759 level.

In the foreign exchange market, European currencies faced resistance on the upside, and the euro-dollar pair plummeted on Friday, the 24th, U.S. time. It fell from 1.175 to 1.170. However, from a technical perspective, the 4-hour chart shows that the pair has not made a new low, and the highs have risen slightly. Therefore, we are at a stage where we need to monitor the results of the German general election and today’s remarks by ECB President Lagarde to determine the market’s direction.

Today’s schedule includes remarks by ECB President Lagarde at 8:45 p.m., remarks by U.S. Federal Reserve Bank of Chicago President Evans at 9:00 p.m.,Chicago Fed President, at 9:30 PM U.S. Durable Goods Orders, at 10:00 PM U.S. Chicago Fed President Williams’ remarks, at 1:50 AM U.S. Fed Governor Brainard’s remarks, and at 2:00 AM U.S. 5-year Treasury auction. We will pay close attention to the content of these key figures’ remarks and assess price movements at the end of the month.

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