Investors should remain vigilant regarding policy interest rates and statement releases in the UK and Europe

Investors should remain vigilant regarding policy interest rates and statement releases in the UK and Europe

03.02.2022

In the previous session, the USD/JPY pair fell by about 60 pips from 114.80 to 114.15, as the Dollar Index edged down to 96.03. The pair is currently trading around 114.47, attempting to rise just above the 20-period moving average on the hourly chart.The U.S. dollar is also showing weakness against European currencies, with the EUR/USD pair extending its gains for the third consecutive day. It is declining in proportion to the resistance faced by the U.S. 10-year Treasury yield.

Ahead of today’s ECB policy rate announcement, the euro has risen against the U.S. dollar. The euro is currently trading around 1.130 against the dollar. However, against the pound—another European currency—the euro has yet to find a clear direction, with the EUR/GBP pair trading within a range of 0.830 to 0.836.At today’s ECB meeting, given the backdrop of rising inflation, some mention of quantitative tightening (QT) is expected, so we should pay close attention to ECB President Lagarde’s remarks.

Today’s key economic indicators include the Eurozone Producer Price Index at 7:00 PM, the Bank of England’s interest rate decision and policy statement at 9:00 PM, remarks by Bank of England Governor Bailey at 9:30 PM, the U.S. Challenger Job Cuts Report, and the EurozoneECB policy rate and statement, 10:30 PM: Eurozone ECB President Lagarde’s press conference, U.S. initial jobless claims, U.S. Q4 nonfarm labor productivity, 11:45 PM: U.S. services PMI, 12:00 AM: U.S. ISM Non-Manufacturing Index, and U.S. Manufacturing Orders Index.We should pay close attention to policy rate movements ahead of the start of U.S. trading hours and monitor currency strength.

Past Market Reports

1. 21.04.2026New

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

2. 20.04.2026New

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

3. 17.04.2026New

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

4. 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

5. 15.04.2026New

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

6. 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

7. 13.04.2026

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

8. 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?

9. 09.04.2026

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

10. 08.04.2026

    Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran