Should We Keep an Eye on the Upside Potential of the Firm U.S. Dollar?
29.03.2022
- U.S. JOLTS Survey
- U.S. — Williams: Remarks by the President of the New York Fed
The U.S. dollar strengthened against the pound the previous day, with the GBP/USD pair falling 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 yield on the 10-year U.S. Treasury note briefly hit 2.55% but is currently trading around 2.47%.
European currencies are trading in a tight range against the U.S. dollar, with the euro/dollar pair fluctuating within a very narrow range between 1.094 and 1.099.The EUR/USD pair is currently trading just above the 20-period moving average (MA) on the 4-hour chart, with price action indicating a search for direction. Therefore, it would be advisable to open a position only after the price breaks through the recent highs or lows at 1.094 or 1.099.
Today, at 15:45, the French Consumer Confidence Index; at 17:30, UK Mortgage Approvals; at 22:00, the U.S. S&P/Case-Shiller Home Price Index, remarks by U.S. Federal Reserve Bank of New York President Williams, the U.S. Consumer Confidence Index, and the U.S. JOLTS Survey;a speech by Harker, President of the Federal Reserve Bank of Philadelphia, at 11:45 p.m., a speech by Zubruck, Deputy Governor of the Swiss National Bank (SNB), at 1:30 a.m., and a U.S. 7-year Treasury auction at 2:00 a.m.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
