One month after the invasion of Ukraine, concerns are mounting over a resurgence of geopolitical risks
23.03.2022
- UK Consumer Price Index
- Remarks by U.S. Federal Reserve Chair Powell
Yesterday, the U.S. dollar weakened against the euro, with the EUR/USD pair rebounding by about 80 pips from 1.096 to 1.104. From a technical perspective, the EUR/USD pair found support at the lower boundary of its 4-hour upward channel, which drove yesterday’s rally. We will be watching closely to see if the upward movement continues toward the upper boundary of the channel, around the 1.114 level.
With Ukrainian President Zelenskyy set to deliver an online address to Parliament at 6:00 p.m. today, European currencies are trading mixed. While the euro has rebounded against the U.S. dollar, it has weakened against Oceania currencies, with the euro/Australian dollar pair falling for the fourth consecutive day and trading around 1.475.
Today, during European trading hours, the UK Retail Price Index, UK Consumer Price Index, and UK Producer Price Index will be released at 16:00, followed by the Turkish Consumer Confidence Index at 17:00, the South African Consumer Price Index at 20:00, and the US MBA Mortgage Applications Index at 21:00. During US trading hours, at 21:00, the UKremarks by BOE Governor Bailey and remarks by Fed Chair Powell, at 21:00; U.S. New Home Sales at 23:00; U.S. Weekly Crude Oil Inventories at 23:30; and remarks by St. Louis Fed President Bullard at 28:00. Tomorrow marks one month since Russia’s invasion of Ukraine, but I intend to continue monitoring the euro’s direction while taking geopolitical risks into account.
Author: Keisuke Sakurai
