All eyes are on how European markets will move after the long holiday weekend
19.04.2022
- Remarks by Swiss National Bank (SNB) Governor Jordan
- U.S. Evans: Remarks by the President of the Chicago Fed
In the U.S. currency market the previous day, trading lacked direction—partly due to the European market being closed—and the EUR/USD pair remained within a range of 1.082 to 1.077, with volatility limited to about 50 pips.However, as Ukraine refused to surrender the southeastern city of Mariupol and maintained its stance of “fighting to the end,” the foreign exchange market viewed the euro as a geopolitical risk. Consequently, the U.S. dollar has been strengthening slightly against the euro.
Among European currencies, the EUR/GBP pair—which had been trending lower—has rebounded temporarily, recovering to 0.829 after hitting a low of 0.824. Since the EUR/GBP is currently being capped at the 20-period moving average on the 4-hour chart, we will need to monitor the situation closely to see if the recent rebound will continue.
There are no major economic indicators scheduled for release today. Once U.S. trading hours begin, the following data will be released: at 21:15, Canadian and global securities trading volume, U.S. housing starts, and U.S. building permits; at 22:00, Canadian existing home sales; and at 25:05, remarks by U.S. Federal Reserve Bank of Chicago President Evans:remarks by Chicago Fed President Evans, and at 05:05, remarks by SNB President Jordan. We’ll be watching for price movements starting during European trading hours to see if Europe shows active trading following the long weekend.
