Should we keep an eye on the trend of European currencies, which are showing signs of strength?

Should we keep an eye on the trend of European currencies, which are showing signs of strength?

28.12.2021

Yesterday, the three major U.S. stock indices all extended their gains, creating a risk-on market characterized by rising stock prices, interest rates, and oil prices. Commodity markets saw broad-based gains across the board, including WTI crude oil, silver, and platinum, while the fear index (VIX) fell to 17.6. The cryptocurrency market was generally down, with BTC/USD trading around $49,188, down 3.5% from the previous day.

In the foreign exchange market, the pound saw a notable rise yesterday, with GBP/USD climbing more than 100 pips from 1.337 to 1.344. However, the pound edged lower against the euro, with EUR/GBP falling from 0.845 to 0.842. From a technical perspective, the key will be whether EUR/GBP breaks below the recent low of 0.841 with a solid candle.

There are no economic indicators scheduled for release during European trading hours today. However, once U.S. trading begins, the U.S. S&P Case-Shiller Home Price Index is scheduled for 11:00 PM, the Richmond Fed Manufacturing Index at 12:00 AM, and the U.S. 5-year Treasury auction at 3:00 AM. As we enter the final week of 2021, I intend to carefully assess how currency strength and weakness will evolve and make informed judgments while forecasting price movements for the remaining three days of the year.

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