Caution over the euro’s direction ahead of tomorrow’s ECB meeting

Caution over the euro’s direction ahead of tomorrow’s ECB meeting

26.10.2022

U.S. currencies weakened yesterday as expectations of a significant rate hike at the next FOMC meeting faded due to inflationary pressures.The EUR/USD pair rose by approximately 120 pips, from 0.9848 to 0.9975. It broke above the daily downtrend line that had been in place since February 7 of this year with a solid candlestick. If the EUR/USD continues to rise, attention will focus on whether it can break above the recent daily high of 0.9999.

European currencies rose against the yen after the results of Germany’s October Ifo Business Climate Survey, released yesterday, came in at 84.3, exceeding the market forecast of 83.6. The euro’s rise against the yen has continued since immediately after the currency intervention the day before yesterday, and it is currently trading around 147.662. With a 0.75% rate hike expected at tomorrow’s ECB meeting, we will be watching closely to see if the euro continues to climb.

Today’s economic indicators include the French Consumer Confidence Index at 3:45 PM, the U.S. MBA Mortgage Applications Index at 8:00 PM, U.S. Wholesale Inventories (flash estimate) at 9:30 PM,the Bank of Canada (BOC) policy rate and statement at 11:00 PM, U.S. new home sales at 11:00 PM, U.S. weekly crude oil inventories at 11:30 PM, a press conference by BOC Governor McLeem at 12:00 AM, and a U.S. 5-year Treasury auction at 2:00 AM. With the ECB meeting tomorrow, we should watch for any upward momentum and remain cautious about the direction of the euro.

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?