Market participants are likely to keep a close eye on the euro’s movements ahead of tomorrow’s ECB policy rate announcement

Market participants are likely to keep a close eye on the euro’s movements ahead of tomorrow’s ECB policy rate announcement

20.07.2022

In yesterday’s U.S. currency trading, the Dollar Index fell to 106.5, while the EUR/USD pair rose by approximately 140 pips from 1.0120 to 1.0268. The EUR/USD has broken well above the 4-hour 75-MA and is now rising toward its next target, the 4-hour 200-EMA at 1.0341. We will monitor the euro’s price action ahead of the ECB meeting to see if this upward trend continues.

European currencies are trading higher ahead of tomorrow’s ECB policy rate announcement, with the euro/yen pair rising from 139.701 to 141.540. The ECB is expected to announce its first rate hike in 11 years at tomorrow’s policy meeting, and buying has been driven by expectations of a rate hike. Depending on tomorrow’s outcome, there is a possibility of a “sell-the-fact” reaction, so traders should pay close attention to today’s price movements.

Today, the UK Consumer Price Index, Retail Price Index, and Producer Price Index are scheduled for 3:00 PM Asia time; the Turkish Consumer Confidence Index at 4:00 PM Europe time; the South African Consumer Price Index at 5:00 PM; the US MBA Mortgage Applications Index at 8:00 PM; the Canadian Consumer Price Index and Industrial Product Prices at 9:30 PM US time;at 11:00 PM U.S. existing home sales, at 11:30 PM U.S. weekly crude oil inventories, and at 2:00 AM U.S. 20-year Treasury auction. We will be closely monitoring the euro’s movements ahead of tomorrow’s ECB policy rate announcement.

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?