Should we focus on the upside potential for European currencies amid geopolitical risks?

Should we focus on the upside potential for European currencies amid geopolitical risks?

15.02.2022

In the U.S. currency market the previous day, while the Dollar Index remained flat at 96.2, the euro fell by about 80 pips against the dollar, from 1.136 to 1.127.This decline offset the gains seen immediately following the ECB’s policy rate decision earlier this month. Given that yesterday’s drop brought the EUR/USD back into the 1.123–1.137 range, it is worth noting that the pair may continue to trade in a directionless manner for the time being.

In European currency markets, the euro has risen slightly during today’s Asian trading session, and the EUR/GBP pair—which had fallen yesterday—has rebounded slightly today. It is currently trading around 0.836. However, since the EUR/GBP pair continues to decline with its upside capped by the 20-period moving average (MA), we will first be watching closely to see if it can break above the 20-MA level of 0.836 with a solid candlestick.

Today, at 4:00 p.m. CET, the UK unemployment rate and UK jobless claims will be released, followed by the Eurozone/German ZEW Economic Sentiment Survey, Eurozone Q4 GDP, and Eurozone Trade Balance, followed by Canadian Housing Starts at 22:15 U.S. time, U.S. Producer Price Index and U.S. NY Fed Manufacturing Index at 22:30, Canadian Existing Home Sales at 23:00, and U.S. Foreign Direct Investment at 6:00 the following day.Amid the escalating situation in Ukraine, we will be watching to see if European currencies can stage a rebound.

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