Has the euro bottomed out against the pound?

Has the euro bottomed out against the pound?

04.04.2022

Last weekend, the U.S. dollar weakened against both the euro and the pound, with the EUR/USD pair falling slightly by 40 pips from 1.107 to 1.102. The U.S. employment report released last weekend showed the unemployment rate at 3.6%, the lowest level since February 2020, suggesting an aggressive rate hike at the next FOMC meeting; however, this did not lead to a significant rise in the U.S. dollar.

In the European currency market, the euro-pound pair has broken above the upper boundary of its daily downtrend channel, briefly reaching 0.850. This level marks the high for the year, and the pair has already closed above February’s high of 0.847. While a temporary pullback is possible, the euro is gaining ground against the pound, making this a critical juncture to carefully assess whether the upward trend will continue.

Today, the German trade balance is scheduled for release at 3:00 p.m. during Asian trading hours; the Turkish Consumer Price Index and Producer Price Index are set for 4:00 p.m. during European trading hours; remarks by Bank of England Governor Bailey are scheduled for 6:05 p.m.; Canadian housing starts are set for 9:30 p.m. during U.S. trading hours; remarks by Bank of England Deputy Governor Kanliff are scheduled for 11:00 p.m.; and the U.S. manufacturing orders index is set for release at 11:00 p.m.We will carefully assess price movements at the start of the week.