Will the euro hold its ground against the U.S. dollar amid rising interest rates?

Will the euro hold its ground against the U.S. dollar amid rising interest rates?

11.04.2022

Last weekend, the U.S. dollar strengthened against the pound, which was trading lower, causing the GBP/USD pair to fall by approximately 100 pips from 1.308 to 1.298.With U.S. long-term bond yields rising sharply, the downward trend continues without any sign of a rebound at the lower boundary of the daily chart’s descending channel. Since the pair has also broken below the recent low of 1.299 on the 4-hour chart, we need to carefully assess whether the decline in GBP/USD will continue.

European currencies traded sideways, with the EUR/USD pair ranging between 1.083 and 1.089. However, the euro emerged as the strongest currency during today’s Asian session, and the EUR/USD opened with a gap up of approximately 45 pips. Until the pair breaks above the 20-period moving average on the 4-hour chart and reaches the recent high at 1.093, we should carefully assess the direction of the EUR/USD.

Today, at 3:00 PM European time, we have UK GDP, UK industrial production, and UK manufacturing output; at 4:00 PM, Turkey’s current account balance and unemployment rate; and at 10:30 PM U.S. time, remarks by Bostic, President of the Atlanta Fed, along with remarks by Fed Governors Bowman and Waller; and at 1:40 AM, remarks by Evans,Chicago Fed President Evans, and at 26:00, a US 3-year Treasury auction. We will be closely monitoring the strength and weakness of the US dollar and European currencies, which have seen significant price movements since the start of the week.

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?