Will the Euro/Dollar Pair, Currently in a Stalemate, Find a Direction?

Will the Euro/Dollar Pair, Currently in a Stalemate, Find a Direction?

13.12.2021

Last weekend, the three major U.S. stock indices all rebounded, leading to a market environment characterized by rising stock prices, falling interest rates, and higher oil prices. Amid strong economic indicators released over the weekend, the yield on the 10-year U.S. Treasury note declined, creating a market environment conducive to buying. WTI crude oil rose to $72.60, while the VIX (fear index) fell by about 13% to 18.6.

The foreign exchange market opened without any significant gaps, and the stalemate between the U.S. dollar and the euro continues. The EUR/USD pair is trading around 1.129 as it searches for direction, having failed to break out of the range it has been trading in since the end of last month. On the daily chart, we will be watching closely to see if the pair breaks through either the recent low of 1.118 or the recent high of 1.135.

Today, the Bank of England (BOE) Financial Stability Report is scheduled for release at 4:00 PM, along with Turkey’s current account balance and industrial production figures. At 5:30 PM, Hong Kong’s Producer Price Index and Industrial Production Index will be released. Other than these, no major policy speeches or economic indicators are scheduled.This week, the UK Consumer Price Index and the US FOMC interest rate decision and statement are scheduled for Wednesday, the 15th, followed by the Swiss National Bank (SNB) interest rate decision and the Bank of England (BOE) interest rate decision on Thursday, the 16th. The market is likely to adopt a wait-and-see stance, particularly leading up to the US FOMC meeting on Wednesday, the 15th. Today, ahead of the FOMC meeting, we want to closely monitor how the balance between European currencies and the US dollar evolves.

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