Should investors be wary of the euro's relentless decline?
24.02.2022
- U.S. 7-Year Treasury Auction
- France: Consumer Confidence Index
In the previous day’s U.S. currency trading, the USD/JPY pair saw volatility of 30 pips over the course of the day, with the market lacking a clear direction. However, when reports of Russia’s invasion of Ukraine emerged during the Asian session this morning, the USD/JPY plummeted.It fell from 115.11 to 114.51. Meanwhile, the US dollar remained firm against the euro, with the EUR/USD pair falling 100 pips from 1.130 to 1.120.
Amid the significant deterioration of the situation in Ukraine, the euro has become the weakest currency in Europe, with the EUR/JPY pair falling more than 160 pips from 130.04 to 128.36. From a technical perspective, the EUR/JPY has already fallen to the daily support level of 128.36, and if the decline continues, the next support level at 127.55 should also be kept in mind.
Today’s schedule includes the French Consumer Confidence Index at 16:45 (European time); remarks by Bank of England Governor Bailey at 22:15 (U.S. time); U.S. Initial Jobless Claims, U.S. Q4 GDP, U.S. Personal Consumption Expenditures, and U.S. Core PCE Deflator at 22:30; and remarks by U.S. Federal Reserve Bank of Richmond President Barkin at 23:00.Richmond Fed President, at 00:00 U.S. time: U.S. new home sales, at 01:00 U.S. time: U.S. weekly crude oil inventories, at 02:00 U.S. time: U.S. Mester: Cleveland Fed President remarks, at 03:00 U.S. time: U.S. 7-year Treasury auction, and at 04:45 U.S. time: NZ: RBNZ Governor Orr remarks. We should be cautious about further downside pressure on European currencies, which are currently weakening.
Author: Keisuke Sakurai
