Attention is likely to focus on the movements of European currencies ahead of the policy rate announcement

Attention is likely to focus on the movements of European currencies ahead of the policy rate announcement

02.02.2022

Yesterday, the three major U.S. stock indices all rose for the third consecutive day, resulting in a market environment characterized by rising stock prices, rising interest rates, and a flat gold market. Amid concerns over the situation in Ukraine and monetary tightening (QT), strong earnings reports from major U.S. companies were well received, driving stock prices higher toward the close. The Russell 2000, which comprises small- and mid-cap stocks, also closed at 2,050, up 1.10% from the previous day.

Ahead of tomorrow’s policy rate announcement, trading in the foreign exchange market has slowed, with GBP/JPY trading within a range of 154.09 to 155.22. Technically, GBP/JPY appears to be finding support at the 200-day SMA on the 4-hour chart; however, since it is positioned just above the 20-day MA on the daily chart, the key focus will be whether it can break decisively above the 20-day MA with a solid candlestick body.

Today’s economic indicators include France’s budget balance at 16:45, the Eurozone’s consumer price index (flash estimate) at 19:00, the U.S. MBA mortgage applications index at 21:00, the U.S. ADP National Employment Report at 22:15, Canada’s housing starts at 22:30,at 12:00 AM: Remarks by BOC Deputy Governor Gravel (Canada), at 12:30 AM: U.S. Weekly Crude Oil Inventories, and at 3:00 AM: Remarks by BOC Governor McClem (Canada). Ahead of tomorrow’s ECB and BOE policy rate announcements, we will carefully monitor how European currencies react.

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