All eyes are on the euro as it faces pressure from the strength of the U.S. dollar

All eyes are on the euro as it faces pressure from the strength of the U.S. dollar

18.11.2021

Yesterday, the three major U.S. stock indices all fell, creating a risk-off sentiment characterized by falling stock prices, lower interest rates, and cheaper crude oil. U.S. housing starts for October, released yesterday, came in at 1.52 million units—below the market forecast of 1.579 million—due to material shortages, while housing permits exceeded expectations.Gold rebounded alongside the decline in the U.S. dollar, rising to the $1,866 level.

In the foreign exchange market, the euro/dollar pair, which had been on a downward trend, paused its decline, briefly touching 1.126 before recovering; it is currently trading around 1.133. However, the euro/dollar pair has hit a new low for the year, and from a technical perspective, we should remain fully prepared for the possibility that the decline could continue down to the next daily support level around 1.115.

Today’s schedule includes the Swiss trade balance at 4:00 PM, the Turkish Central Bank’s (TCMB) policy rate decision and statement at 8:00 PM, remarks by Bostic, President of the Atlanta Fed, at 10:00 PM, Canadian international securities turnover, U.S. initial jobless claims, and the U.S. Philadelphia Fed Business Outlook Index at 10:30 PM, and remarks by Williams, President of theRemarks by Bostic, President of the New York Fed; at 24:00, U.S. Leading Economic Index; at 24:30, U.S. Weekly Natural Gas Inventories; and at 25:00, U.S. Kansas City Fed Manufacturing Activity Index. We will pay close attention to today’s economic releases and monitor 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