Will the Euro Hold Its Ground Against the U.S. Dollar as Interest Rates Rise?
11.04.2022
- Remarks by Federal Reserve Board Member Waller
- Bostic (U.S.): Remarks by the President of the Atlanta Federal Reserve Bank
Last weekend, the U.S. dollar strengthened against the weakening pound, and the GBP/USD pair fell by about 100 pips from 1.308 to 1.298.Partly due to the sharp rise in U.S. long-term bond yields, the downward trend continues without any sign of a rebound at the lower boundary of the daily chart’s descending channel. Since the pair has also broken below the recent low of 1.299 on the 4-hour chart, we need to carefully assess whether the GBP/USD’s decline will continue.
Among European currencies, the euro/dollar traded sideways within a range of 1.083 to 1.089. However, during today’s Asian trading session, the euro emerged as the strongest currency, and the euro/dollar opened with a gap up of approximately 45 pips.Until the EUR/USD breaks above the 20-period moving average (MA) on the 4-hour chart and reaches the recent high at 1.093, we should carefully assess the pair’s direction.
Today’s schedule includes UK GDP, UK industrial production, and UK manufacturing output at 15:00 European time; Turkey’s current account balance and unemployment rate at 16:00; and at 22:30 U.S. time, remarks by U.S. Federal Reserve Governor Bostic:remarks by the President of the Atlanta Fed, remarks by U.S. Federal Reserve Governor Bowman, remarks by U.S. Federal Reserve Governor Waller, at 25:40 remarks by U.S. Chicago Fed President Evans, and at 26:00 a U.S. 3-year Treasury auction.We will be closely monitoring the strength and weakness of the U.S. dollar and European currencies, which have seen significant price movements since the start of the week.
Author: Keisuke Sakurai
