Should We Be Wary of the Falling Euro?
05.04.2022
- Remarks by Brainard, the Next U.S. Federal Reserve Vice Chair
- U.S. Daily: Remarks by the President of the San Francisco Federal Reserve Bank
In the previous day’s U.S. currency trading, the 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 situation in Ukraine, the euro began to trend lower, 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, 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, followed by the U.S. services PMI (final reading) at 22:45,at 23:00, the U.S. ISM Non-Manufacturing Index; at 23:05, remarks by Lael Brainard, the incoming Vice Chair of the Federal Reserve; at 25:30, remarks by David Daly,remarks by the President of the San Francisco Fed, and at 27:00, remarks by U.S. President of the New York Fed, Williams. While keeping geopolitical risks in mind, we should pay close attention to the economic data releases starting during European trading hours.
Author: Keisuke Sakurai
