Should Investors Be Wary of the Euro, Which Is Rebounding on Hopes for a Negotiated Resolution to the Ukraine Crisis?
10.03.2022
- U.S. 30-Year Treasury Auction
- U.S. Consumer Price Index
In U.S. currency trading the previous day, the dollar index fell from 99.1 to 98.1, weighing on the U.S. dollar’s upside. As a result, the USD/JPY pair—which had been approaching the 116-yen level—pulled back to 115.55 yesterday.However, during today’s Asian trading session, the pair touched 116.00 and resumed its upward trend, making this a good time to watch for further upside potential against the yen.
Among European currencies, the euro rose across the board, with the EUR/USD pair climbing approximately 200 pips in a single day from 1.089 to 1.109.Ukrainian President Zelenskyy stated that “there is some room for compromise in talks 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, at 16:00, Turkey’s unemployment rate will be released; at 21:45, the ECB will announce its policy rate and statement; at 22:30, ECB President Lagarde will hold a press conference, and U.S. initial jobless claims and the U.S. Consumer Price Index will be released; and at 24:30, U.S.weekly natural gas inventories, at 27:00, the U.S. 30-year Treasury auction, at 28:00, the U.S. budget balance, and at 6:30 the following day, New Zealand’s Manufacturing PMI are scheduled to be released. While keeping a close eye on developments in Ukraine and Russia, I’d like to monitor the euro’s resilience.
Author: Keisuke Sakurai
