Investors should be wary of reduced volatility on the final day of the European long weekend
18.04.2022
- European markets are closed for Easter Monday
- Remarks by the Governor of the RBNZ in New Zealand
Last weekend, the U.S. dollar edged higher on the back of rising U.S. Treasury yields but remained locked in a tight battle with the euro, with the EUR/USD pair trading within a range of 1.079 to 1.082. With no major economic indicators scheduled for release this week—except for the U.S. Leading Economic Index on Thursday, the 21st—we will be watching for straightforward price movements in the U.S. dollar driven by rising interest rates.
European currencies remained in a stalemate against the Australian dollar. By the end of the weekend, the EUR/AUD pair was trading in a range between 1.457 and 1.461, but broke above that range during today’s Asian trading session, rising to 1.467. With the situation in Ukraine escalating and fighting in Mariupol showing no signs of ending, the euro continues to face resistance at higher levels.
Today, the Turkish Housing Market Index is scheduled for release at 8:30 p.m., followed by remarks from U.S. Federal Reserve Bank of St. Louis President Bullard and RBNZ Governor Orr at 11:00 p.m. Following last Friday, European markets remain closed today for a public holiday. There are no major events, such as policy rate decisions, scheduled for this week. Investors should be mindful of reduced volatility during European trading hours.
Author: Keisuke Sakurai
