Should we keep an eye on the euro’s movements in a risk-on market?
16.02.2022
- UK Unemployment Insurance Claims
- U.S. New York Fed Manufacturing Index
Yesterday, stock indices in both European and U.S. markets rebounded sharply across the board. With the situation in Ukraine calming down, the Euro 50 closed at 4,143, up 1.95% from the previous day. WTI crude oil, which had been rising, fell by about 5% to $90.00. As the market shifted from risk-off to risk-on sentiment, gold also fell back by about 1.3% to $1,852.
The euro has been performing strongly in the foreign exchange market, with the EUR/USD pair rebounding from 1.128 to 1.136.On the hourly chart, the EUR/USD pair is currently finding support at the 20-day moving average (MA) on the downside while being capped by the 200-day exponential moving average (EMA) on the upside. Since it is positioned midway between 1.123 and 1.140 on the 4-hour chart, we will be watching price movements following today’s release of the FOMC minutes to see which direction the market will lean.
Today, at 4:00 PM, the UK Consumer Price Index, UK Producer Price Index, and UK Retail Price Index will be released; at 5:00 PM, the South African Consumer Price Index; and at 7:00 PM, the EurozoneIndustrial Production, South African Retail Sales at 8:00 PM, the U.S. MBA Mortgage Applications Index at 9:00 PM, the U.S. Import Price Index, Canadian Wholesale Sales, Canadian Manufacturing Sales, and the Canadian Consumer Price Index at 10:30 PM, and U.S. Industrial Production at 11:15 PM, followed by the release of the U.S. FOMC Minutes at 4:00 AM.We will be watching the euro’s price movements from the European session through the U.S. session following the easing of geopolitical risks.
Author: Keisuke Sakurai
