Will the downward trend in European currencies continue?

Will the downward trend in European currencies continue?

01.11.2021

Last weekend, the three major U.S. stock indices all rose, resulting in a market environment characterized by rising stock prices, falling interest rates, and stable crude oil prices. The U.S. September PCE deflator, released over the weekend, came in at 4.4%, in line with market expectations, marking the highest rate of increase in 30 years. Although concerns about inflation have not been dispelled, their impact on the market was limited.

The foreign exchange market has shown no significant gaps, with cross-yen pairs trading sideways during today’s Asian session. European currencies, in particular, have been weak, with the euro/yen falling from 132.93 to 131.61. From a technical perspective, the euro/yen has found support at the 20-day moving average (MA) over the past three days, halting its decline. We need to carefully assess whether it can hold the 20-day MA support level around 131.57.

Today’s economic indicators include German retail sales at 4:00 PM, Hong Kong’s third-quarter real GDP at 5:30 PM,the Swiss SVME Purchasing Managers' Index at 5:30 PM, Germany's Manufacturing PMI at 5:55 PM, the Eurozone Manufacturing PMI at 6:00 PM, the UK Manufacturing PMI at 6:30 PM, Canada's Leading Economic Index at 9:30 PM, and the US ISM Manufacturing Index and US Construction Spending at 11:00 PM.This week is packed with events, starting with the U.S. FOMC meeting on Wednesday the 3rd, followed by policy rate announcements from Australia and the UK, and ending with the U.S. jobs report on Friday the 5th. We will pay close attention to these economic indicators and assess currency strength.

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