We should remain vigilant to see if currency strength shifts as U.S. trading hours begin
12.07.2022
- U.S. NFIB Small Business Optimism Index
- U.S. - Barkin: Remarks by the President of the Richmond Federal Reserve Bank
In the previous day’s U.S. currency markets, the Dollar Index rose to 108, making the dollar the dominant force. The USD/JPY pair hit a new high for the year, touching 137.752.During today’s Asian trading session, we are seeing price movements attempting to extend the rally. While it remains to be seen whether this upward trend will continue, we should keep in mind that buying driven by market expectations is likely to persist until tomorrow’s CPI release, as tomorrow’s U.S. Consumer Price Index results could lead to adjustments in the magnitude of interest rate hikes at the next FOMC meeting.
European currencies are under pressure against the U.S. dollar, with the euro/dollar exchange rate falling to 1.0004, just shy of parity. Europe is facing soaring resource prices and energy supply issues stemming from the prolonged Russian invasion of Ukraine, and unless geopolitical risks subside, the euro is expected to remain weak against the U.S. dollar.
Today’s schedule includes remarks by Bank of England Deputy Governor Kanrif at 17:00 CET, the German ZEW Economic Sentiment Survey at 18:00, remarks by German Bundesbank President Nagel at 18:30, and the U.S. NFIB Small Business Optimism Index at 19:00. During U.S. trading hours, at 25:30, Richmond Fed President Barkin is scheduled to speak,, remarks by U.S. Richmond Fed President Barkin at 01:30, remarks by UK BOE Governor Bailey at 02:00, and the U.S. 10-year Treasury auction. We will carefully assess whether currency strength shifts as we move into U.S. trading hours.
Author: Keisuke Sakurai
Past Market Reports
22.04.2026
Will interest grow in the upside potential of the Swiss franc, which has risen against the yen?
21.04.2026
With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall
20.04.2026
Will the market wait and see how much further the U.S. dollar can rise against the yen?
17.04.2026
Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.
16.04.2026
Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar
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?
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
13.04.2026
Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?
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?
09.04.2026
Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?
