Should We Keep an Eye on the Euro, Which Is Rising Amid Geopolitical Risks?
18.03.2022
- Canada: International Securities Trading Volume
- U.S. - Birkin: Remarks by the President of the Richmond Federal Reserve Bank
U.S. currencies traded weakly the previous day, partly because the yield on the 10-year U.S. Treasury note remained flat. The euro/dollar pair continued to rise from 1.100 to 1.113.From a technical perspective, the EUR/USD pair has been consolidating lower after its rally, with its upside capped by the 200 EMA on the 4-hour chart. 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 euro/pound pair climbed approximately 900 pips from 0.836 to a monthly high of 0.845.The EUR/GBP pair had been trading in a range around the mid-0.839 level since the start of the month, but it will be interesting to see if the upward trend that began yesterday continues.
Today’s schedule includes the Eurozone trade balance at 19:00 European time; Canadian retail sales and Canadian international securities turnover at 21:30 U.S. time; U.S. existing home sales and the U.S. leading economic index at 23:00; and at 25:00, remarks by Kashkari:remarks by Kashkari, President of the Minneapolis Fed; at 26:20, remarks by Barkin, President of the Richmond Fed; and at 27:00, remarks by Bowman, Member of the Federal Reserve Board. I plan to keep a close eye on the direction of the rising euro while closely monitoring currency strength and weakness.
Author: Keisuke Sakurai
