Should we watch for the euro to test new highs as it rebounds?
23.02.2022
- Remarks by Haskell, a member of the Bank of England’s Monetary Policy Committee
- U.S. Daily: Remarks by the President of the San Francisco Federal Reserve Bank
In yesterday's trading, the U.S. dollar came under pressure against Oceania currencies, with the AUD/USD pair rising by about 70 pips from 0.717 to 0.724. Since the AUD/USD pair continues to show a clear upward trend on the hourly chart, with both highs and lows rising, we will monitor commodity prices to determine whether it will extend its gains to the recent high of 0.725.
European currencies rallied as the risk of a Russian invasion receded following the announcement of sanctions against Russia by the U.S., the U.K., and the EU, causing the euro to rebound.The EUR/JPY pair rose more sharply than GBP/JPY, climbing approximately 140 pips from 129.36 to 130.77. However, as the pair has pulled back slightly on the hourly chart, with its upside capped by the 200-period EMA, we would maintain a bearish outlook until it breaks decisively above the recent high of 130.90.
Today, during European trading hours, the German GfK Consumer Confidence Survey is scheduled for 16:00, followed by remarks from Bank of England Governor Bailey, Deputy Governor Broadbent, MPC member Haskell, and MPC member Tenreiro at 18:30. At 19:00, the Eurozone, and during U.S. trading hours at 21:00, the U.S. MBA Mortgage Applications Index; at 27:00, the U.S. 5-year Treasury auction; and at 29:30, remarks by U.S. Federal Reserve Bank of San Francisco President Daly. We will continue to monitor currency strength and weakness while keeping geopolitical risks in mind.
Author: Keisuke Sakurai
