Should we watch for a pullback in the euro-dollar exchange rate?

Should we watch for a pullback in the euro-dollar exchange rate?

18.10.2021

Last weekend, the three major U.S. stock indices all extended their gains, with the S&P 500 closing at 4,471 points, up 0.75% from the previous day. The yield on the 10-year U.S. Treasury note has risen again to 1.60%.WTI crude oil prices have also surged and are currently trading in the $82.8 range. Gold has faced resistance as the U.S. dollar strengthens and has fallen to the $1,767 range.

In the foreign exchange market, the U.S. dollar continues to strengthen. The EUR/USD pair has paused its rebound from last week and is currently testing support around 1.158. Technically, the EUR/USD is trading above the 200-period simple moving average (SMA), and we need to carefully assess whether the support level around 1.157 will hold.

Today’s schedule includes remarks by U.S. Federal Reserve Vice Chair Quarles at 6:30 p.m., Turkey’s Housing Price Index at 8:30 p.m., Canada’s Housing Starts at 9:15 p.m., Canada’s International Securities Turnover at 9:30 p.m., U.S. Industrial Production and Capacity Utilization at 10:15 p.m., the U.S. NAHB Housing Market Index at 11:00 p.m., and remarks by the UK’sremarks by Bank of England Deputy Governor Canrif, and at 12:40 a.m., remarks by Bank of Canada Deputy Governor Lane. We will monitor currency strength and weakness while carefully watching price movements at the start of the week.

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