Keep an eye on changes in currency strength over the weekend

Keep an eye on changes in currency strength over the weekend

28.10.2022

U.S. currencies rose against the euro yesterday after the U.S. third-quarter GDP figure, released yesterday, came in at 2.6%, exceeding the consensus forecast.The EUR/USD pair fell by approximately 130 pips from 1.0093 to 0.9957, dropping from the +2σ level of the 4-hour Bollinger Bands to just below the 20-period moving average. However, since no RSI divergence has appeared on either the 4-hour or daily charts and the bullish signal has not been negated, traders should watch for a potential decline in the U.S. dollar from the weekend through the start of next week.

Although the ECB raised its policy rate by 0.75 percentage points to 2.00% during yesterday’s policy announcement, the euro fell, dragging down the pound, another major European currency. The EUR/GBP pair dropped by approximately 80 pips from 0.8688 to 0.8609, approaching this month’s low. On the daily chart, the price has closed below the 75-day moving average, so we need to remain vigilant as to whether the decline will continue.

Today, at 15:45 Asia time, we have the French Producer Price Index and French Consumer Price Index; at 16:00 European time, the Swiss KOF Leading Index; at 17:00, German Q3 GDP (flash estimate);at 21:00, Germany’s Consumer Price Index; during U.S. trading hours at 21:30, Canada’s GDP, U.S. Personal Income, U.S. Personal Spending, U.S. PCE Deflator, and U.S. Core PCE Deflator; and at 23:00, U.S. Pending Home Sales and the University of Michigan Consumer Sentiment Index. We will be closely monitoring how these economic releases impact currency strength over the weekend.

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?