Market participants may be wary of sharp fluctuations in the euro following remarks by ECB President Lagarde

Market participants may be wary of sharp fluctuations in the euro following remarks by ECB President Lagarde

04.05.2023

In yesterday’s U.S. currency markets, the U.S. dollar became the weakest currency after the FOMC announced a 0.25% hike in the policy rate to 5.00–5.25%, in line with market consensus. The EUR/USD pair rose by approximately 936 pips from 1.0996 to 1.1091, forming an uptrend along the 10-period moving average on the hourly chart.With yesterday’s rise, EUR/USD is approaching this year’s high. Since the price is being supported by the 20-day moving average on the daily chart, we should watch for further gains during U.S. trading hours.

Ahead of today’s ECB policy rate announcement, the euro rose against the Australian dollar. The EUR/AUD pair climbed from 1.6500 to 1.6594. However, during today’s Asian trading session, the euro became the weakest currency and has since pulled back. Since the RSI on the daily chart for EUR/AUD is trading in a range around 70, traders should be wary of a sharp drop following the release of economic indicators.

Today’s schedule includes Germany’s trade balance at 3:00 PM, the UK’s services PMI and mortgage approvals at 5:30 PM, the Eurozone’s producer price index at 6:00 PM, the U.S. Challenger job cuts forecast at 8:30 PM, the ECB’s policy rate decision and statement at 9:15 PM, Canada’s trade balance at 9:30 PM,at 9:45 PM, a press conference by ECB President Lagarde; at 11:00 PM, the Canadian Ivey PMI; at 11:30 PM, U.S. weekly natural gas inventories; and at 1:50 AM, remarks by Bank of Canada Governor McClem. We should be on the lookout for price volatility, as the euro may experience sharp swings following President Lagarde’s remarks at the ECB.

Past Market Reports

1. 21.04.2026New

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

2. 20.04.2026New

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

3. 17.04.2026New

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

4. 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

5. 15.04.2026New

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

6. 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

7. 13.04.2026

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

8. 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?

9. 09.04.2026

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

10. 08.04.2026

    Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran