With U.S. interest rates rising, should we be wary of a euro struggling to gain ground?

With U.S. interest rates rising, should we be wary of a euro struggling to gain ground?

09.02.2022

In the previous session, the U.S. dollar remained in a stalemate with European currencies but showed slight strength, causing the EUR/USD pair to fall by about 50 pips from 1.144 to 1.139.Since the EUR/USD pair appears to be finding support at the 20-period moving average (MA) on the 4-hour chart, the focus will likely be on whether it breaks below the 20-MA level at 1.140. Meanwhile, the US dollar weakened against the Australian dollar, and the AUD/USD pair rose slightly from 0.710 to 0.715.

Among European currencies, the euro has been weakening against the pound, with the EUR/GBP pair falling from 0.854 to 0.841. Concerns that the conflict between Russia and western Ukraine over Ukraine will affect the entire European region are weighing on the euro, keeping its upside limited. Meanwhile, the EUR/JPY pair has already fallen below its 20-period moving average, while other euro-yen crosses remain above their 20-period moving averages.

Today, at 4:00 PM, Germany’s trade balance; at 9:00 PM, the U.S. MBA Mortgage Applications Index; at 10:10 PM, remarks by MPC member Pill; at 12:00 AM, U.S. wholesale inventories;at 12:30 AM: U.S. weekly crude oil inventories and remarks by Fed Governor Bowman; at 2:00 AM: remarks by BOC Governor McClem and remarks by Cleveland Fed President Mester; and at 3:00 AM: the results of the U.S. 10-year Treasury auction are scheduled to be released. With U.S. interest rates on the rise, we will be closely monitoring how European currencies are affected.

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