Caution over the weakness of European currencies?

Caution over the weakness of European currencies?

07.10.2021

Yesterday, the three major U.S. stock indices all rose toward the close, resulting in a market environment characterized by rising stock prices, higher interest rates, and lower oil prices. As concerns over a U.S. government default eased, buying activity picked up, causing stock prices to rise in the final hours of trading. The Russell 2000, which tracks small-cap stocks, was unable to recover from the previous day’s decline and closed down 0.6% at 2,214.

In the foreign exchange market, the pound, which had been rebounding, has resumed its downward trend, with GBP/USD trading around 1.358. On the hourly chart, GBP/USD appears to be forming a triple top pattern, so this is a situation where we need to carefully assess whether the currency will continue to show significant weakness against the U.S. dollar and maintain its downward trend.

Today’s schedule includes German industrial production and UK Halifax house prices at 3:00 PM, French trade balance and current account balance at 3:45 PM, the ECB Governing Council meeting minutes and U.S. Challenger job cuts at 8:30 PM, U.S. initial jobless claims at 9:30 PM, and U.S. Fed’s Williams at 9:40 PM:NY Fed President’s remarks; at 11:00 PM, Canada’s Ivey PMI; at 11:30 PM, US weekly natural gas inventories; at 12:45 AM, US Mester: Cleveland Fed President’s remarks; at 1:00 AM, Canada’s Maclean BOC Governor’s remarks; and at 4:00 AM, US consumer credit balances.Ahead of tomorrow’s U.S. jobs report, we will be closely monitoring the strength and weakness of the U.S. dollar and European 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