Should we keep an eye on the direction of the euro, which has started to rise?

Should we keep an eye on the direction of the euro, which has started to rise?

09.12.2021

Yesterday, in the U.S. markets, the three major stock indices all rose slightly toward the close, continuing the risk-on sentiment characterized by rising stocks, interest rates, and oil prices.The VIX (fear index) fell below its benchmark level of 20, dropping to 19.9. The Russell 2000, which tracks small- and mid-cap stocks, also rose, closing at 2,271. BTC/USD fell below $50,000 and is trading sideways in the $49,800 range.

In the foreign exchange market yesterday, the euro stood out among the yen crosses, with the EUR/JPY pair rising by more than 100 pips from 127.93 to 129.11. The euro also rose against the U.S. dollar, with the EUR/USD pair climbing from 1.126 to 1.135, setting a new recent high on the hourly chart.Since the EUR/USD pair has been forming higher lows on the 4-hour chart, we will closely monitor the situation to see if the rebound continues.

Today, at 15:00 Asia time, Japan’s machine tool orders; at 16:00 Europe time, Germany’s trade balance; at 20:00, South Africa’s manufacturing production; at 22:30 U.S. time, U.S. initial jobless claims; at 24:00, U.S. wholesale inventories (final);at 12:30 AM, U.S. weekly natural gas inventories; at 3:00 AM, U.S. 30-year Treasury auction; at 4:00 AM, remarks by BOE Deputy Governor Brabel; and at 6:30 AM the following day, New Zealand Manufacturing PMI. I intend to closely monitor how the euro, which has been strengthening recently, will move.

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