Investors should keep an eye on the euro, which is rebounding on hopes of a diplomatic resolution to the situation in Ukraine

Investors should keep an eye on the euro, which is rebounding on hopes of a diplomatic resolution to the situation in Ukraine

10.03.2022

In the U.S. currency market yesterday, the dollar index fell from 99.1 to 98.1, weighing on the dollar’s upside. As a result, the USD/JPY pair, which had been hovering just below the 116-yen level, fell back to 115.55. However, during today’s Asian trading session, the pair touched 116.00 and has resumed its upward trend, making this a good time to watch for further upside potential against the yen.

European currencies saw across-the-board gains, with the euro rising approximately 200 pips against the U.S. dollar in a single day, from 1.089 to 1.109.Ukrainian President Zelenskyy stated that "there is some room for compromise in negotiations with Russia," prompting a buyback of the euro on hopes of a ceasefire. Since the EUR/USD pair has slightly broken above the 200-period SMA on the hourly chart, we will be watching closely to see if it resumes its upward trend after a retest.

Today, Turkey’s unemployment rate is scheduled for 4:00 PM, followed by the ECB’s policy rate decision and statement at 9:45 PM, ECB President Lagarde’s press conference at 10:30 PM, U.S. initial jobless claims and the U.S. Consumer Price Index, U.S. weekly natural gas inventories at 12:30 AM, and the U.S. 30-year Treasury auction at 3:00 AM.at 2:00 AM, the U.S. budget balance, and at 6:30 AM the following day, the New Zealand Manufacturing PMI. While keeping a close eye on developments in Ukraine and Russia, I want to watch for any signs of a rebound in the euro.