Markets may be watching the euro's movements ahead of the ECB meeting

Markets may be watching the euro's movements ahead of the ECB meeting

08.06.2022

The U.S. dollar was slightly weaker against European currencies the previous day, with GBP/USD rising 170 pips from 1.243 to 1.259.The US dollar came under pressure as the pound strengthened following the release of the UK Services PMI, which came in at 53.4 versus the market forecast of 51.8. However, since the GBP/USD pair is trading within a range on the daily chart—with a lower bound at 1.243 and an upper bound at 1.259—we should exercise caution in determining whether the upward trend will continue.

European currencies are showing a slight bullish trend ahead of tomorrow’s ECB policy rate announcement, with the euro/dollar pair rising from 1.065 to 1.071. However, as the upside is being capped by the daily 75-day moving average (MA), the focus will likely be on whether the decline stops around 1.066, near the daily 20-day MA. For now, we will be watching closely to see if the pair can break above the daily 75-day MA at 1.077 with a solid candle.

Today’s schedule includes the Swiss unemployment rate at 14:45 (Asia time), German industrial production and UK Halifax house prices at 15:00, and the French trade balance and current account balance at 15:45. During European trading hours, Bank of Japan Governor Kuroda will speak at 16:35, followed by UKConstruction PMI, at 18:00: Eurozone Q1 GDP, at 20:00: U.S. MBA Mortgage Applications Index, at 23:00 U.S. time: U.S. Wholesale Inventories, at 23:30: U.S. Weekly Crude Oil Inventories, and at 26:00: U.S. 10-Year Treasury Auction. Ahead of tomorrow’s ECB meeting, we will be closely monitoring the euro’s movements to see how prices develop.

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?