Attention is turning to the resilience of European currencies, which have been weakening

Attention is turning to the resilience of European currencies, which have been weakening

19.01.2022

Yesterday, as U.S. markets reopened following the long weekend, the three major stock indices all fell, resulting in a market environment characterized by falling stock prices, rising interest rates, and higher oil prices.The Dow Jones Industrial Average fell about 1.51% from the previous day, closing at $35,368. The VIX (fear index) rose about 18%, surpassing its benchmark of 20 to reach 22.7. While commodity markets were generally rising, gold fell slightly, trading around $1,812.

In the foreign exchange market, the euro is weakening, with the EUR/USD pair falling from 1.141 to 1.131.The EUR/USD pair has already broken below the 200-period simple moving average (SMA) on the hourly chart and is currently positioned just above the 200-period SMA on the 4-hour chart. Technically, the EUR/USD pair appears to be capped by the weekly 20-period moving average (MA). If the decline continues, a drop to 1.080 is possible in the long term, so it is important to carefully assess the relative strength between the euro and the U.S. dollar.

Today’s schedule includes the UK Consumer Price Index and Retail Price Index, and the German Consumer Price Index at 16:00 European time; the South African Consumer Price Index at 17:00; the US MBA Mortgage Applications Index at 21:00 US time; the Canadian Consumer Price Index, Canadian House Price Index, and US Housing Starts at 22:30; and remarks by UKremarks by BOE Governor Bailey and BOE Deputy Governor Kanrif, and at 27:00, a US 20-year Treasury auction. I intend to watch the situation carefully to see if the weakening euro can stage a solid rebound.

Past Market Reports

1. 20.04.2026New

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

2. 17.04.2026New

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

3. 16.04.2026New

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

4. 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

5. 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?

6. 13.04.2026

   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

7. 10.04.2026

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

8. 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?

9. 08.04.2026

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

10. 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