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. As the situation in Ukraine stabilized, 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 $90.0.As the market shifted from risk-off to risk-on, gold also pulled back by about 1.3% to $1,852.
In the foreign exchange market, the euro has been trading firmly, and the EUR/USD pair rebounded from 1.128 to 1.136.On the hourly chart, the EUR/USD pair is currently finding support at the 20-period moving average (MA) on the downside while being capped by the 200-period 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 action following today’s release of the U.S. FOMC minutes to see which direction the market will lean.
Today, at 4:00 p.m., the UK Consumer Price Index, UK Producer Price Index, and UK Retail Price Index will be released; at 5:00 p.m., the South African Consumer Price Index; and at 7:00 p.m., the EurozoneIndustrial Production, at 8:00 PM South African Retail Sales, at 9:00 PM the U.S. MBA Mortgage Applications Index, at 10:30 PM the U.S. Import Price Index and Canadian Wholesale Sales,Canada’s Wholesale Sales, Canada’s Manufacturing Sales, and Canada’s Consumer Price Index; following the release of U.S. Industrial Production at 23:15, the U.S. FOMC Minutes are scheduled to be released at 28:00. 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
