Keep an eye on the euro, which is showing signs of strength against the U.S. dollar
20.01.2022
- Turkey: TCMB Policy Rate and Statement Release
- Europe: ECB Releases Minutes of December Governing Council Meeting
Yesterday, the three major U.S. stock indices all closed lower, 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—which involves 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, investors should be wary of a potential decline. Meanwhile, the euro is showing signs of strength against the U.S. dollar.
Today, at 4:00 PM, Germany’s Producer Price Index will be released; at 7:00 PM, the Eurozone’s Consumer Price Index (final reading); at 8:00 PM, the Turkish Central Bank (TCMB) will announce its policy rate and statement; and 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 is significant price movement in European currencies.
Author: Keisuke Sakurai
