Should we keep an eye on the balance between the U.S. dollar and European currencies?

Should we keep an eye on the balance between the U.S. dollar and European currencies?

26.10.2021

Yesterday, all three major U.S. stock indices rose, with the Nasdaq posting the largest gain, closing at 15,226 points, up 0.90% from the previous day. The Semiconductor Index (SOX) also rose, trading around 3,392. The rise in the U.S. 10-year Treasury yield has paused, and it is currently trading in the 1.64% range.

In the foreign exchange market, the euro faced upward resistance after Germany’s October Ifo Business Climate Index, released yesterday, came in at 97.7—below the forecast of 98.0—marking a fourth consecutive monthly decline; as a result, the euro/pound pair fell from 0.846 to 0.842. The euro is also weakening against Oceania currencies, with the euro/Australian dollar pair dropping to 1.545.

Today, the CBI Retail Trade Survey is scheduled for 7:00 PM European time, followed by the S&P/Case-Shiller Home Price Index at 10:00 PM U.S. time, the Consumer Confidence Index, New Home Sales, and the Richmond Fed Manufacturing Index at 11:00 PM U.S. time, and a 2-year Treasury auction at 2:00 AM U.S. time.Additionally, earnings reports from U.S. tech giants such as Alphabet, Twitter, and Microsoft are concentrated today. We should pay close attention to movements in U.S. stocks and carefully monitor currency balances.

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