Watch for the direction of European currencies, which are facing resistance at higher levels

Watch for the direction of European currencies, which are facing resistance at higher levels

11.11.2021

Yesterday, the three major U.S. stock indices all fell further, leading to a risk-off market characterized by falling stock prices, rising interest rates, and lower oil prices. Following the release of strong U.S. economic data yesterday, concerns about inflation pushed the yield on the 10-year U.S. Treasury note up by about 6.3 percentage points to 1.56%. The VIX (fear index) rose by about 5.3 percentage points and is currently hovering around 18.7.

In the foreign exchange market, European currencies faced resistance despite the rising U.S. dollar, and the GBP/USD pair fell from 1.357 to 1.341. From a technical perspective, while the GBP/USD is approaching the 200-day EMA on the weekly chart, it is still some distance from the 200-day SMA, so we need to carefully assess whether the decline will continue.

Today’s schedule includes the UK unemployment rate, UK GDP, UK industrial production, UK manufacturing output, and UK trade balance at 4:00 PM European time; the ECB’s monthly report at 6:00 PM; remarks by a member of the Bank of England’s Monetary Policy Committee at 7:45 PM; and remarks by SNB Board Member Meckl at 2:30 AM U.S. time.As we enter the latter half of the week and volatility in the foreign exchange market has increased, we need to carefully assess how currency strength and weakness will evolve.

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