Should investors be wary of the US dollar's relentless slide?

Should investors be wary of the US dollar's relentless slide?

14.01.2022

Yesterday, the three major U.S. stock indices all fell, creating a full-blown risk-off market characterized by falling stock prices, lower oil prices, and declining interest rates. Gold also fell back to $1,724, and BTC/USD is similarly trending lower. The yield on the 10-year U.S. Treasury note has dropped to 1.72%.

In the foreign exchange market, the U.S. dollar has lost momentum due to a decline in the Dollar Index. The EUR/USD pair has risen and is testing resistance near its recent highs. The EUR/USD is currently trading around 1.147, with the 20-period moving average on the hourly chart continuing to provide support. From a technical perspective, there are no major resistance levels until the 200-period exponential moving average on the daily chart at 1.159, so we will need to monitor the situation carefully to see if the upward trend continues.

Today’s schedule includes UK GDP and the UK trade balance at 16:00 CET, the final reading of the French CPI at 16:45 CET, and the EU trade balance at 19:00 CET; followed by remarks by ECB President Lagarde at 22:30 ET, U.S. retail sales,U.S. Import Price Index, at 23:15 U.S. Industrial Production and Capacity Utilization, at 24:00 U.S. University of Michigan Consumer Sentiment Index (Preliminary), U.S. Business Inventories, and at 25:00 remarks by U.S. NY Fed President Williams. We should pay close attention to the direction of the U.S. dollar, as its downward momentum shows no signs of stopping.

Past Market Reports

1. 22.04.2026New

   Will interest grow in the upside potential of the Swiss franc, which has risen against the yen?

2. 21.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

3. 20.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

4. 17.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

5. 16.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

6. 15.04.2026

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

7. 14.04.2026

   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

8. 13.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

9. 10.04.2026

   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?

10. 09.04.2026

    Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?