Attention on the direction of European currencies following the FOMC meeting

Attention on the direction of European currencies following the FOMC meeting

03.11.2021

Yesterday, the three major U.S. stock indices all extended their gains, resulting in a market environment characterized by rising stock prices, falling interest rates, and lower oil prices. WTI crude oil fell to $82.20 per barrel. Gold is trading in the $1,781 range. Although Australia’s policy interest rate, announced yesterday, was kept at 0.1%, the RBA stated that it would abandon its goal of keeping bond yields at low levels.

A wait-and-see mood has taken hold in the foreign exchange market ahead of today’s U.S. FOMC meeting, and no significant fluctuations are being observed. However, the pound—which is drawing attention ahead of tomorrow’s policy rate announcement—is trading weakly against the yen, with GBP/JPY hovering around 155.12. Since GBP/JPY has already begun to break below the 20-day moving average on the daily chart, we need to carefully assess whether it will continue to decline.

Today’s schedule includes the UK Nationwide House Price Index and Turkey’s Consumer Price Index and Producer Price Index at 4:00 PM; the UK Services PMI and remarks by ECB President Lagarde at 6:30 PM; the US MBA Mortgage Applications Index at 8:00 PM; the US ADP National Employment Report at 9:15 PM; the US Services PMI (final reading) at 10:45 PM;at 11:00 PM: US ISM Non-Manufacturing PMI; at 11:30 PM: US weekly crude oil inventories; at 1:00 AM: remarks by Bank of England Governor Bailey; at 3:00 AM: announcement of the US FOMC policy rate and statement; and at 3:30 AM: press conference by Federal Reserve Chair Powell.We should pay close attention to the FOMC statements and monitor the positioning of 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