Should we keep an eye on the euro, which is rising amid geopolitical risks?
18.03.2022
- Canada: International Securities Trading Volume
- U.S. – Barkin: Remarks by the President of the Richmond Federal Reserve Bank
U.S. currencies traded weakly yesterday, partly due to the 10-year Treasury yield remaining flat. The EUR/USD pair continued to rise, climbing from 1.100 to 1.113. From a technical perspective, the EUR/USD has been consolidating lower after its rally, with the 200-period EMA on the 4-hour chart capping its upside. We will need to assess whether the pair will continue to rise or retest the 1.100 level.
Amid lingering concerns that Russia’s invasion of Ukraine could drag on, the euro rose against the weakening pound. The EUR/GBP pair climbed approximately 900 pips from 0.836 to a monthly high of 0.845. While the pair had been trading in a range around the mid-0.839 level since the start of the month, it will be interesting to see if the upward trend that began yesterday continues.
Today, at 19:00 CET, the Eurozone trade balance will be released; at 21:30 EST, Canadian retail sales and Canadian international securities turnover will be released; at 23:00 EST, U.S. existing home sales and the U.S. leading economic index will be released; and at 25:00 EST, U.S. Fed Governor Kashkari:Remarks by Kashkari, President of the Minneapolis Fed; at 2:20 a.m., remarks by Barkin, President of the Richmond Fed; and at 3:00 a.m., remarks by Bowman, Member of the Federal Reserve Board. While keeping an eye on the direction of the rising euro, I plan to wait and see how currency strength plays out.
Author: Keisuke Sakurai
