All eyes are on how European markets will react after the long holiday weekend

All eyes are on how European markets will react after the long holiday weekend

19.04.2022

In the previous day’s U.S. currency trading, the market lacked direction due in part 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 staged a temporary rebound, recovering to 0.829 after hitting a low of 0.824. Since the EUR/GBP is currently being capped by the 20-period moving average on the 4-hour chart, we will need to closely monitor whether this recent upward rebound continues.

There are no major economic indicators scheduled for release today. However, once U.S. trading hours begin, the following data points are scheduled: at 21:15, Canadian international securities turnover, U.S. housing starts, and U.S. building permits; at 22:00, Canadian existing home sales; at 25:05, remarks by Charles Evans, President of the Chicago Fed; and at 25:30, remarks by Jordan, Governor of the Swiss National Bank (SNB).We will be watching for price movements starting in European trading hours to see if Europe shows active trading following the long weekend.