With geopolitical risks lingering and the euro facing resistance at higher levels, market participants are likely to keep a close eye on its direction

With geopolitical risks lingering and the euro facing resistance at higher levels, market participants are likely to keep a close eye on its direction

06.09.2022

In the previous day’s U.S. currency markets, trading lacked volatility, partly because U.S. markets were closed for a holiday.The Dollar Index fell to 109.5, and the EUR/USD pair, which opened with a gap down yesterday, rose to completely fill that gap. It rebounded by 90 pips, moving from 0.9878 to 0.9968. However, since the EUR/USD has not yet surpassed its recent high on the 4-hour chart, the downtrend has not been resolved; therefore, traders should pay close attention to the direction of the market as U.S. trading hours approach.

European currencies are facing resistance, with the euro weighed down by the indefinite suspension of Nord Stream 1, causing the EUR/JPY pair to trade in a range between 138.689 and 139.620.During today’s Asian session, the euro/yen rose along with the general upward trend in cross-yen pairs, touching 139.966. Since the euro/yen appears to be forming a triple top on the daily chart, traders should keep in mind the possibility of a sharp decline driven by fundamental factors.

Today’s schedule includes German manufacturing orders at 15:00 (Asia time), the UK construction PMI at 17:30 (Europe time), South Africa’s Q2 GDP at 18:30, Mexico’s total fixed capital formation at 20:00, the US services PMI (final reading) at 22:45 (US time),the US ISM Non-Manufacturing Index at 11:00 PM, and a US 1-year Treasury auction at 12:30 AM. With geopolitical risks lingering and the euro facing resistance on the upside, we will be closely monitoring its direction.

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?