Should we be wary of the euro’s upside potential as it rebounds?

Should we be wary of the euro’s upside potential as it rebounds?

09.05.2022

Last weekend, the U.S. dollar turned bearish against the euro after the non-farm payrolls figure in the U.S. employment report came in at 428,000, below the previous reading. The EUR/USD pair rebounded from 1.048 to 1.059. However, the rally did not hold, and the pair has since fallen back to 1.050 during today’s Asian trading session.From a technical perspective, the EUR/USD pair has tested the 1.047 support level—which has held over the past month—more than three times on the 4-hour chart, so traders should be cautious of a break below this level should the pair continue to decline.

European currencies saw the euro rise against both the U.S. dollar and the British pound, with the EUR/GBP pair climbing more than 90 pips from 0.850 to 0.859. The EUR/GBP pair continued its upward trend during today’s Asian trading session and is currently trading around 0.856. Additionally, given that ECB Governing Council member and Austrian Central Bank Governor Holzmann stated last weekend that “up to three rate hikes should be implemented this year,” we should keep a close eye on the euro’s rise.

Today, we have France’s trade balance and current account balance scheduled for 3:45 p.m. CET, followed by Canadian housing starts at 9:30 p.m. EST, remarks by MPC member Saunders at 10:00 p.m. EST, and U.S. wholesale inventories (final reading) at 11:00 p.m. EST. We will be closely monitoring how the euro reacts after these key events are released.

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?