Will European currencies rebound against the strengthening U.S. dollar?

Will European currencies rebound against the strengthening U.S. dollar?

12.10.2021

Yesterday, the three major U.S. stock indices all continued to decline toward the close, with the S&P 500 ending at 4,361 points, down 0.69% from the previous day.The market was characterized by falling stock prices, flat interest rates, and rising oil prices. Selling pressure on major U.S. financial firms ahead of this week’s earnings announcements also contributed to the decline. Additionally, Goldman Sachs’ downward revision of its U.S. economic growth forecasts for fiscal years 2021 and 2022 was another factor behind the drop in stock prices.

In the foreign exchange market, the Euro/USD pair is facing resistance at higher levels as the Dollar Index has risen to 94.3, and it is currently trading around 1.155. However, given that the daily RSI is hovering near 30, it would be unwise to be overly optimistic about a sharp decline. In any case, we should monitor the situation closely without making any assumptions about the direction of the market.

Today’s schedule includes the UK ILO unemployment rate and employment statistics at 3:00 PM, the German Wholesale Price Index at 3:00 PM, Turkey’s industrial production at 4:00 PM, the Eurozone ZEW Economic Sentiment Index at 6:00 PM, South Africa’s manufacturing output at 8:00 PM, and India’sIndia’s Industrial Production Index, at 10:00 PM, a speech by ECB President Lagarde, and at 12:15 AM, a speech by Fed Vice Chair Clarida. We should pay close attention to today’s key speeches during U.S. trading hours and assess the relative strength 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