Should we be wary of the falling euro?

Should we be wary of the falling euro?

05.04.2022

In the previous session, the U.S. dollar showed no clear direction against the yen, with USD/JPY trading in a range between 122.25 and 122.94. However, during today’s Asian trading session, USD/JPY tested lower levels, briefly falling to 122.38.

As reports emerged of the devastation in the Ukrainian capital of Kyiv amid the escalating crisis in Ukraine, the euro began to decline, with the euro-pound exchange rate falling by approximately 80 pips from 0.843 to 0.835. Concerns that further economic sanctions against Russia could have a negative ripple effect on the eurozone weighed on the euro’s upside.

Today, during European trading hours, France’s industrial production and manufacturing production index will be released at 15:45, followed by the UK’s services PMI (final reading) at 17:30. During U.S. trading hours, Canada’s trade balance and the U.S. trade balance will be released at 21:30, the U.S. services PMI (final reading) at 22:45,at 11:00 PM, the U.S. ISM Non-Manufacturing Index; at 11:05 PM, remarks by Lael Brainard, the incoming Vice Chair of the Federal Reserve; at 1:30 AM, remarks by John Daly, President of the San Francisco Fed; and at 3:00 AM, remarks by John Williams, President of the New York Fed. While keeping geopolitical risks in mind, we should pay close attention to the economic data releases starting during European trading hours.

Past Market Reports

1. 22.04.2026New

   Will interest grow in the upside potential of the Swiss franc, which has risen against the yen?

2. 21.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

3. 20.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

4. 17.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

5. 16.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

6. 15.04.2026

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

7. 14.04.2026

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

8. 13.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

9. 10.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

10. 09.04.2026

    Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?