Will the downward pressure on the euro ease?

Will the downward pressure on the euro ease?

14.03.2022

Last weekend, the U.S. dollar saw the Dollar Index rise to 99.2—its highest level since May 2020—while the USD/JPY pair climbed more than 180 pips from 116.06 to 117.87.USD/JPY has rebounded with solid support at the 20-week moving average, and since last week’s weekly candle was a strong bullish candle, we plan to take a wait-and-see approach regarding upside potential until the U.S. FOMC meeting on the 16th.

European currencies continue to face selling pressure against the euro amid rising geopolitical risks, such as the escalating situation in Ukraine. The EUR/USD pair fell by approximately 130 pips from 1.104 to 1.089, partly due to the strengthening of the U.S. dollar. The euro is also weakening against the pound, another European currency, and the EUR/GBP pair continues to trend downward, with its upside capped by the 120-day moving average on the daily chart.

Apart from France’s current account and trade balance data scheduled for 4:45 PM and Hong Kong’s producer price index and industrial production data scheduled for 5:30 PM, no major economic indicators are scheduled for release during U.S. trading hours today. Please note that the U.S. switches to Daylight Saving Time starting today. We will keep a close eye on price movements at the start of the week while closely monitoring the latest headlines.