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 yesterday’s U.S. currency markets, the U.S. dollar rose following the release of the U.S. Consumer Price Index (CPI, year-over-year). The GBP/USD pair fell from 1.319 to 1.306. From a technical perspective, the GBP/USD pair is on track to break below the 200-day simple moving average (SMA) on the weekly chart with this week’s closing candle, so investors should remain cautious about further downside potential.
European currencies are seeing sporadic selling on the back of 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 market is currently searching for direction.
Today, the following data releases are scheduled: at 16:00 CET, UK GDP, UK industrial production, UK manufacturing output, UK trade balance, and Germany’s consumer price index (final reading); and at 22:30 EST, Canada’s unemployment rate and net change in employment; and at 24:00 EST, the University of Michigan consumer sentiment index (preliminary reading).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
