Caution Over the U.S. Dollar's Struggle to Gain Ground?
17.02.2022
- Europe: ECB Monthly Report
- U.S. – Brade: Remarks by the President of the St. Louis Federal Reserve Bank
In the U.S. currency market the previous day, the USD/JPY pair edged lower as the Dollar Index fell slightly to 95.7, amid lingering concerns over the escalating situation in Ukraine.It pulled back from 115.77 to 115.33. However, USD/JPY has held firm in the 115-yen range and is finding support at the 75-period moving average on the 4-hour chart, so traders should pay close attention to remarks from key officials during U.S. trading hours today.
Among European currencies, the pound rose against the U.S. dollar while the euro and the pound remained in a tight race. The GBP/USD pair rose slightly by 60 pips, from 1.353 to 1.360.Since the recent high of 1.361 is acting as resistance for GBP/USD, the focus will likely be on whether the pair can break above this resistance zone with a solid candlestick. We should also keep an eye on today’s ECB monthly report.
Today’s schedule includes: Switzerland’s trade balance at 16:00, the ECB’s monthly report at 18:00, the TCMB’s policy rate and statement at 20:00, Canada’s housing price index and international securities turnover at 22:30, U.S. initial jobless claims,U.S. housing starts, and the U.S. Philadelphia Fed Business Outlook Index at 25:00; at 7:00 the following day, remarks by U.S. St. Louis Fed President Braad are scheduled.We will be closely monitoring whether the weakening U.S. dollar will recover in response to today’s remarks by key officials.
Author: Keisuke Sakurai
