Should investors be wary of the euro's downward trend against the pound?

Should investors be wary of the euro's downward trend against the pound?

22.11.2022

In the previous day’s U.S. currency markets, the U.S. dollar strengthened and emerged as the strongest currency as the yield on the 10-year U.S. Treasury note rose to 3.82%.The EUR/USD pair fell by approximately 110 pips from 1.0333 to 1.0222. It broke below the 200-period simple moving average (SMA) on the hourly chart. Since the 200-period SMA is acting as resistance on the daily chart and the pair has entered a downtrend, we will be watching closely to see if tomorrow’s release of the FOMC minutes changes the market’s direction.

European currencies fell against the pound after Germany’s October Producer Price Index (PPI), released yesterday, plummeted to -4.2% from the market forecast of 0.7%.The euro fell slightly against the pound, from 0.8697 to 0.8658. During today’s Asian trading session, the pair continues to test lower levels. Since the daily chart shows a significant break below the previous high, investors should remain cautious about a potential long-term decline in the euro.

Today’s economic indicators include the Turkish Consumer Confidence Index at 4:00 PM, remarks by RBA Governor Lowe of Australia, Canadian Retail Sales at 10:30 PM, the Richmond Fed Manufacturing Index at 12:00 AM, and remarks by Mester of the U.S. Federal Reserve at 1:00 AM:Cleveland Fed President remarks, at 02:00 AM: Canada’s BOC Senior Deputy Governor Rogers remarks, at 03:00 AM: Germany’s Bundesbank President Nagel remarks, U.S. 7-year Treasury auction, at 04:15 AM: U.S. Kansas City Fed President George remarks, and at 04:45 AM: U.S. St. Louis Fed President Bullard remarks.We should remain vigilant regarding the direction of the euro, which is currently weakening against the pound.

Past Market Reports

1. 21.04.2026New

   Will interest grow in the upside potential of the Swiss franc, which has risen against the yen?

2. 20.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

3. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

4. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

5. 15.04.2026

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

6. 14.04.2026

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

7. 13.04.2026

   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. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

9. 09.04.2026

   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. 08.04.2026

    Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?