All eyes are on whether the weakening euro will follow the U.S. dollar’s lead following the FOMC meeting

All eyes are on whether the weakening euro will follow the U.S. dollar’s lead following the FOMC meeting

27.07.2022

In yesterday’s U.S. currency markets, the U.S. dollar held steady despite the release of disappointing quarterly earnings from Alphabet and a 40% year-over-year drop in GM’s profits, which sent its stock price tumbling.The Dollar Index has recovered to 107, and GBP/USD fell by more than 120 pips from 1.2089 to 1.1963. However, the U.S. dollar has lost momentum since the start of Asian trading today, and GBP/USD is currently trading around 1.2060, aiming for higher levels.

European currencies saw the euro lose momentum amid growing concerns over natural gas supplies. While the USD/JPY held its ground against the decline, the EUR/JPY fell by more than 160 pips from 139.811 to 138.136, hitting a new low for the week. From a technical perspective, the EUR/JPY is trending downward along the 20-period moving average on the 4-hour chart, and with room to fall as far as the -3σ level of the Bollinger Bands, we need to carefully assess whether this downward trend will continue.

Today, the German GfK Consumer Confidence Survey is scheduled for 3:00 PM Asia time, followed by the French Consumer Confidence Index at 3:45 PM. During European trading hours, the U.S. MBA Mortgage Applications Index is set for 8:00 PM, and during U.S. trading hours, U.S. Durable Goods Orders and U.S. Wholesale Inventories are scheduled for 9:30 PM.at 11:00 PM, U.S. Pending Home Sales; at 11:30 PM, U.S. Weekly Crude Oil Inventories; at 3:00 AM, the FOMC policy rate decision and statement; at 3:30 AM, a press conference by Fed Chair Powell; and Meta’s earnings report is scheduled after the U.S. market close. We will closely monitor whether the euro follows the dollar’s movements following the FOMC 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?