Should we be wary of the direction the euro is taking as it weakens?

Should we be wary of the direction the euro is taking as it weakens?

03.08.2022

U.S. currencies rose yesterday, in contrast to the continued decline in stock prices. As bonds were sold off and the yield on the 10-year U.S. Treasury note rose again to 2.71%, the Dollar Index also rebounded to the 106 level. The EUR/USD pair, which had appeared poised to rise, fell back from 1.2093 to 1.0162, marking a decline of approximately 130 pips.The pair appeared to have been capped by the 200-period SMA on the 4-hour chart and pulled back, but we will be watching closely to see if it can rise again around the 20-period MA on the daily chart.

European currencies are trading weaker against the pound ahead of tomorrow’s policy rate announcement, with the euro/pound pair falling by approximately 60 pips from 0.8400 to 0.8339. The downward trend in the euro/pound pair, which began after it hit this year’s high of 0.8719 on June 15, shows no signs of stopping, and the pair has now fallen below the 61.8% Fibonacci retracement level on the daily chart.It remains to be seen whether tomorrow’s BOE policy rate announcement will accelerate this decline.

Today, during Asian trading hours, Germany’s trade balance will be released at 15:00, followed by Switzerland’s Consumer Price Index at 15:30. During European trading hours, Turkey’s Consumer Price Index and Producer Price Index will be released at 16:00, followed by France’s Services PMI at 16:50, the UK’s Services PMI at 17:30, and the Eurozone’sProducer Price Index, at 8:00 PM the U.S. MBA Mortgage Applications Index, at 10:45 PM U.S. time the U.S. Services PMI, at 11:00 PM the U.S. ISM Non-Manufacturing PMI, at 11:30 PM U.S. weekly crude oil inventories, remarks by U.S. Federal Reserve Bank of Philadelphia President Harker, and at 12:45 AM remarks by U.S. Federal Reserve Bank of Richmond President Barkin.We should pay close attention to price movements following the release of the final PMI figures during European trading hours.

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?