Should we keep an eye on the pound, which is showing strong support?
18.02.2022
- UK Retail Sales
- Williams (U.S.): Remarks by the President of the New York Fed
U.S. currencies weakened yesterday after the February Philadelphia Fed Business Outlook Index came in at 16.0, below the market forecast of 20.0. The GBP/USD pair rose by about 80 pips from 1.355 to 1.363.Since GBP/USD has surpassed the recent high of 1.361 on the 4-hour chart, we will be watching closely to see if it can break through the next target of 1.364 with a solid candle if the upward trend continues.
Among European currencies, the euro has been weakening against the pound, with the EUR/GBP pair falling from 0.837 to 0.833. The pair has resumed its downward trend this month and is now approaching the weekly support level of 0.828, so we will be watching closely to see if the decline continues.
Today’s schedule includes UK retail sales, Turkish home sales, and the Turkish consumer confidence index at 16:00 European time; the French consumer price index at 16:45; Canadian retail sales at 22:30 US time; US existing home sales and the US leading economic index at 24:00; and remarks by Fed Governor Waller and remarks by Evans at 24:45:Chicago Fed President, at 1:00 AM: U.S. Fed Vice Chair-designate Brainard’s remarks. Amid a weak U.S. dollar, we will be watching the pound, which has shown resilience on the downside.
Author: Keisuke Sakurai
