Should we keep an eye on the upside potential of the strengthening U.S. dollar?
29.03.2022
- U.S. JOLTS Survey
- Williams (U.S.): Remarks by the President of the New York Fed
The U.S. dollar strengthened against the pound yesterday, with the GBP/USD exchange rate falling by approximately 110 pips from 1.318 to 1.306.Factors contributing to the dollar’s rise included the release of U.S. wholesale inventories (flash estimate) yesterday, which rose to 2.1% from the previous reading of 0.8%, as well as the yen’s relative weakness following the Bank of Japan’s announcement of fixed-rate operations. The U.S. 10-year Treasury yield briefly touched 2.55% but is currently trading around 2.47%.
European currencies are trading in a tight range against the U.S. dollar, with the EUR/USD pair fluctuating within a very narrow range between 1.094 and 1.099. The EUR/USD is currently trading just above the 20-period moving average on the 4-hour chart, with price action indicating that the market is searching for direction. Therefore, it would be advisable to open a position only after the price breaks through the recent high or low at 1.094 or 1.099.
Today, the French Consumer Confidence Index is scheduled for 3:45 PM, UK Mortgage Approvals for 5:30 PM, the U.S. S&P/Case-Shiller Home Price Index for 10:00 PM, and remarks by U.S. Federal Reserve Governor Williams:Remarks by NY Fed President Williams, the U.S. Consumer Confidence Index, and the U.S. JOLTS Survey; at 11:45 PM, remarks by U.S. Philadelphia Fed President Harker; at 1:30 AM, remarks by Swiss SNB Vice Chairman Zubruck; and at 2:00 AM, the U.S. 7-year Treasury auction. We will be closely monitoring whether today’s economic data releases will cause any shifts in the currently firm U.S. dollar.
Author: Keisuke Sakurai
