Should We Focus on the Strength and Weakness of European and U.S. Currencies in This State of Tension?
13.04.2022
- UK Consumer Price Index
- U.S. Weekly Crude Oil Inventories
In the previous session, the U.S. dollar traded in a tight range against the pound, which remained steady at 3.8%—unchanged from the previous reading—with the GBP/USD pair fluctuating between 1.299 and 1.305.From a technical perspective, since the GBP/USD pair has been testing the 1.298 support level with increasing frequency, we should remain vigilant against a break below this support level, just to be safe.
European currencies continued to face upward pressure as the economic outlook in Germany’s ZEW Economic Sentiment Survey, released yesterday, came in at -41.0, marking a deterioration from the previous reading.The EUR/AUD pair failed to sustain the rebound that began last weekend, falling approximately 200 pips from 1.468 to 1.448.
Today, the UK Consumer Price Index and Retail Price Index will be released at 3:00 p.m., followed by the U.S. MBA Mortgage Applications Index at 8:00 p.m., the U.S. Producer Price Index at 9:30 p.m. (U.S. time), and the Bank of Canada’s policy rate decision and statement at 11:00 p.m.at 11:30 p.m., the U.S. weekly crude oil inventory report; at midnight, a press conference by BOC Governor McClem; and at 2:00 a.m., a U.S. 30-year Treasury auction. I intend to carefully monitor the balance of strength and weakness between European and U.S. currencies.
Author: Keisuke Sakurai
