Should investors be wary of chasing the euro lower as its decline shows no signs of stopping?

Should investors be wary of chasing the euro lower as its decline shows no signs of stopping?

24.02.2022

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 U.S. dollar remained firm against the euro, with the EUR/USD pair dropping 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 of 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 Richmond Fed President Barkin at 23:00:Richmond Fed President, at 00:00 U.S. time: New Home Sales, at 01:00 U.S. time: Weekly Crude Oil Inventories, at 02:00 U.S. time: Mester, Cleveland Fed President, at 03:00 U.S. time: 7-Year Treasury Auction, and at 04:45 U.S. time: New Zealand RBNZ Governor Orr’s remarks. We should remain cautious about further downside pressure on European currencies, which are currently weakening.

Past Market Reports

1. 21.04.2026New

   Will interest grow in the upside potential of the Swiss franc, which has risen against the yen?

2. 20.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

3. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

4. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

5. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

6. 14.04.2026

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

7. 13.04.2026

   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

8. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

9. 09.04.2026

   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?

10. 08.04.2026

    Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?