All eyes are on the euro’s movements following ECB President Lagarde’s dovish remarks

All eyes are on the euro’s movements following ECB President Lagarde’s dovish remarks

08.02.2022

In the previous day’s trading, U.S. currencies came under pressure from surging Oceania currencies, with the AUD/USD pair rising from 0.706 to 0.713.During today’s Asian session, the currency pair is testing higher levels in a similar fashion. Meanwhile, the GBP/USD pair lacks clear direction and is trading in a range between 1.349 and 1.355. However, as the Asian session began today, the USD/JPY pair rose by about 50 pips from 114.91 to 115.41, driven by the rise in the U.S. 10-year Treasury yield to 1.93%.

European currencies are facing resistance on the upside following yesterday’s clearly dovish remarks by ECB President Lagarde—who stated that “interest rate hikes will not come before the end of asset purchases”—and the EUR/USD pair has shifted to trading within a very narrow range between 1.141 and 1.146.If this gradual decline continues, we would like to position ourselves for a decline with some room to fall, targeting the area around 1.137, which is the 10-day moving average on the daily chart.

Today, the French trade balance and current account balance are scheduled for 4:45 p.m. CET, the U.S. NFIB Small Business Optimism Index for 8:00 p.m. CET, the Canadian trade balance and U.S. trade balance for 10:30 p.m. CET, and the U.S. 3-year Treasury auction for 3:00 a.m. CET. We will be closely monitoring whether the rising USD/JPY pair will test further upside.

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