Market participants are likely keeping a close eye on the downside potential of European currencies, which have been trending higher against the yen.

Market participants are likely keeping a close eye on the downside potential of European currencies, which have been trending higher against the yen.

07.10.2022

In the previous session, the U.S. dollar strengthened as interest rates rose, with the Dollar Index recovering to 112.2. The EUR/USD pair fell by approximately 140 pips from 0.9925 to 0.9788. The decline occurred as the pair was capped by the 200-period simple moving average (SMA) on the 4-hour chart.EUR/USD has now fallen for two consecutive days. It broke below the daily 20-day moving average (MA) with a real body candle, and the rebound after touching the upper boundary of the downtrend line that has been in place since February of this year was pronounced. Therefore, we will be closely monitoring whether the decline continues.

Among European currencies, the euro continued to decline against the yen, with the EUR/JPY pair falling by approximately 150 pips from 143.459 to 141.928. Although a slight rebound was seen during today’s Asian trading session, the pair remains below the 20-period moving average on the 4-hour chart. Given that the 4-hour RSI has reversed near the 50 level, caution is warranted regarding a potential further decline heading into the U.S. trading session.

Today’s schedule includes German industrial production and retail sales at 3:00 PM, UK Halifax house prices at 3:00 PM, French trade balance at 3:45 PM, remarks by BOE Deputy Governor Ramsden at 7:25 PM, Canadian and U.S. employment reports at 9:30 PM, U.S. wholesale inventories at 11:00 PM, and remarks by Williams:Remarks by NY Fed President Williams, at 12:00 AM: Remarks by Kashkari, Minneapolis Fed President, at 1:00 AM: Remarks by Bostic, Atlanta Fed President, and at 4:00 AM: U.S. consumer credit balances. We will be closely monitoring the downside potential for European currencies, which are currently trending toward a stronger yen.

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?