Should we be wary of the falling euro?
05.04.2022
- Remarks by Brainard, the incoming Vice Chair of the Federal Reserve
- U.S. Daily: Remarks by the President of the San Francisco Federal Reserve Bank
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 conflict, 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 spillover effect on the eurozone weighed on the euro’s upside.
Today’s schedule includes French industrial production and the manufacturing production index at 15:45 CET, the UK services PMI (final reading) at 17:30 CET, the Canadian trade balance and the U.S. trade balance at 21:30 ET, the U.S. services PMI (final reading) at 22:45 ET,at 11:00 PM, the US ISM Non-Manufacturing PMI; 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.
Author: Keisuke Sakurai
