Keep an eye on the euro, which is showing strength against the U.S. dollar

Keep an eye on the euro, which is showing strength against the U.S. dollar

20.01.2022

Yesterday, the three major U.S. stock indices all fell toward the close, creating a risk-off sentiment characterized by falling stock prices, lower oil prices, and declining interest rates. WTI crude oil fell to $84.90. While commodity markets were generally trending lower, gold rose by about 1.5% to $1,842 per troy ounce.

In the foreign exchange market, the EUR/GBP pair—a cross between two European currencies—is trading in a tight range between 0.831 and 0.834. On the daily chart, the EUR/GBP pair has been forming lower highs and lower lows, and since there is no support until the weekly low of 0.829, caution is warranted regarding a potential decline. Meanwhile, the euro is showing strength against the U.S. dollar.

Today, at 4:00 PM, Germany’s Producer Price Index; at 7:00 PM, the Eurozone’s Consumer Price Index (final reading); at 8:00 PM, the Turkish Central Bank’s (TCMB) policy rate and statement; at 9:30 PM, the Eurozone’sDecember ECB Governing Council minutes, at 10:30 PM the U.S. Initial Jobless Claims and the U.S. Philadelphia Fed Business Outlook Index, at 12:00 AM U.S. Existing Home Sales, at 12:30 AM U.S. Weekly Natural Gas Inventories, at 1:00 AM U.S. Weekly Crude Oil Inventories, and at 6:30 AM the following day the NZ Manufacturing PMI.With the release of the ECB Governing Council minutes approaching, we will be watching to see if there will be significant price movements in European currencies.

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