Market Participants May Be on Guard Against Significant Price Fluctuations Amid Inflation Concerns in Various Countries
11.03.2022
- Employment and Unemployment Rates
- UK GDP
In the U.S. currency market yesterday, the U.S. dollar rose following the release of the U.S. Consumer Price Index (CPI, year-over-year) results. The GBP/USD pair fell from 1.319 to 1.306.From a technical perspective, the GBP/USD pair is in the process of breaking below the 200-day simple moving average (SMA) on the weekly chart with this week’s closing candlestick, so investors should remain cautious about further downside potential.
European currencies are seeing sporadic selling on disappointment regarding the euro, as the ECB left its policy rate unchanged at 0% at yesterday’s monetary policy meeting and limited its comments to stating that “interest rate hikes will come some time after the end of quantitative easing.”The EUR/AUD pair fell by approximately 250 pips from 1.515 to 1.491. Amid geopolitical risks, the pair is trading in a range as it searches for direction.
Today, at 16:00 European time, UK GDP, UK industrial production, UK manufacturing output, UK trade balance, Germany’s Consumer Price Index (final reading),Turkey’s industrial production are scheduled for release during European trading hours, while Canada’s unemployment rate and net change in employment are scheduled for 22:30 during U.S. trading hours, and the U.S. University of Michigan Consumer Sentiment Index (preliminary reading) is scheduled for 24:00.In addition to the uncertain outlook for the situation in Ukraine, we will be closely monitoring market movements as they are caught between rising inflation in various countries.
Author: Keisuke Sakurai
