Attention may be turning to European currencies, which are holding firm against the yen in contrast to U.S. currencies

Attention may be turning to European currencies, which are holding firm against the yen in contrast to U.S. currencies

22.05.2023

Last weekend, U.S. currency markets reacted to remarks by Federal Reserve Chair Powell, who stated, “We have maintained a prolonged period of monetary tightening, but we are now facing uncertainty regarding the extent of credit tightening caused by stress in the banking sector.”Expectations for a rate hike at the FOMC meeting next month in June have receded, causing the U.S. dollar to fall against the euro. The EUR/USD pair rose from 1.0760 to 1.0828, returning just below the 20-period moving average on the 4-hour chart. However, on the daily chart, the RSI has yet to reach 30 and still has room to fall, so it will be worth watching to see if the U.S. dollar recovers during U.S. trading hours.

Among European currencies, the Swiss franc rose slightly against the yen ahead of today’s industrial production release. The CHF/JPY pair rose from 152.851 to 153.765. The price has since stabilized and is currently trading around 153.300.As CHF/JPY has risen to approach this year’s high of 153.961, set earlier this month, attention is focused on whether the Swiss franc will continue to strengthen against the yen.

Today’s schedule includes Swiss industrial production at 3:30 PM, the Turkish consumer confidence index at 4:00 PM, Taiwan’s unemployment rate at 5:00 PM, Hong Kong’s consumer price index at 5:30 PM, Eurozone construction output at 6:00 PM, and U.S. Federal Reserve Governor Brainard at 9:30 PM:St. Louis Fed President’s remarks at 9:30 PM, the Eurozone Consumer Confidence Index at 11:00 PM, and remarks by U.S. Atlanta Fed President Bostic, U.S. Richmond Fed President Barkin, and U.S. San Francisco Fed President Daly at 12:05 AM. We will carefully monitor the upside potential of European currencies, which are holding firm against the yen in contrast to the U.S. dollar.

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