Should We Be Wary of Declining Volatility on the Final Day of the European Holiday 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 rising U.S. Treasury yields but remained in a tight race with the euro, with the EUR/USD pair trading within a range of 1.079–1.082.With no major economic indicators scheduled this week—except for the U.S. Leading Economic Index on Thursday, the 21st—we will be watching for straightforward movements in the U.S. dollar driven by rising interest rates.
European currencies remained in a stalemate against Oceania currencies.As of the weekend, the euro/Australian dollar pair was trading in a range of 1.457–1.461, but during today’s Asian trading session, it broke out to the upside, 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 8:30 p.m., followed by remarks by U.S. Federal Reserve Bank of St. Louis President Bullard and RBNZ Governor O’Hara at 29:00.Following last Friday, Europe is on a long weekend due to a public holiday. There are no major events, such as policy rate announcements, scheduled for this week. Be mindful of reduced volatility during European trading hours.
