With U.S. interest rates rising, investors may be wary of the euro, which is struggling to gain ground
09.02.2022
- U.S. 10-Year Treasury Auction
- U.S. Weekly Crude Oil Inventories
In yesterday's trading, while the U.S. dollar remained in a stalemate with European currencies, it 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. 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 of the Bank of England; at 12:00 AM, U.S. wholesale inventories;at 12:30 a.m., U.S. weekly crude oil inventories and remarks by Fed Governor Bowman; at 2:00 a.m., remarks by BOC Governor McClem and remarks by Cleveland Fed President Mester; and at 3:00 a.m., the U.S. 10-year Treasury auction. With U.S. interest rates on the rise, we will be closely monitoring how European currencies are affected.
Author: Keisuke Sakurai
