Will the euro remain weak amid the protracted situation in Ukraine?

Will the euro remain weak amid the protracted situation in Ukraine?

06.04.2022

Yesterday, the U.S. dollar gained ground against the euro, with the EUR/USD pair falling by about 100 pips from 1.098 to 1.088. The decline has continued along the 20-period moving average on the hourly chart. Yesterday, Lael Brainard, the incoming U.S. Federal Reserve Vice Chair known for her dovish stance, stated that "rapid quantitative tightening (QT) will be necessary at next month’s meeting," which led to a rise in the U.S. dollar amid expectations of interest rate hikes.

Amid reports of civilian casualties in Ukraine, European currencies faced resistance at higher levels. While other euro-yen crosses gained momentum and rose, the euro-yen pair rose by only 80 pips. On the 4-hour chart, the euro-yen continues to form lower highs and lower lows, and no reversal signals have yet appeared. We need to closely monitor whether the downtrend will continue.

Today’s schedule includes the German Manufacturing PMI at 15:00 CET, the UK Construction PMI at 17:30 CET, the Eurozone Producer Price Index at 18:00 CET, and the US MBA Mortgage Applications Index at 20:00 CET. Once US trading hours begin, the schedule features remarks by Harker, President of the Philadelphia Fed, at 22:30 CET, the Canadian Ivey PMI at 23:00 CET, remarks by US Treasury Secretary Yellen at 23:00 CET, and US weekly crude oil inventories at 23:30 CET.remarks by Harker, President of the Philadelphia Fed; at 23:00, the Canadian Ivey PMI and remarks by U.S. Treasury Secretary Yellen; at 23:30, U.S. weekly crude oil inventories; and at 03:00, the release of the U.S. FOMC minutes. We will pay close attention to remarks by key figures from European to U.S. trading hours and closely monitor the euro’s movements.

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?