Should we focus on the relative strength and weakness of European and U.S. currencies in this state of equilibrium?
13.04.2022
- UK Consumer Price Index
- U.S. Weekly Crude Oil Inventories
In the previous day’s trading, the U.S. dollar traded in a tight range against the pound, which remained steady at 3.8% following the latest unemployment figures, with the GBP/USD pair fluctuating between 1.299 and 1.305. From a technical perspective, as the GBP/USD pair has been testing the 1.298 support level with increasing frequency, we should remain vigilant for a potential break below this level.
European currencies continued to face upward pressure as the economic outlook in the German 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’s schedule includes the UK Consumer Price Index and Retail Price Index at 3:00 PM, the US MBA Mortgage Applications Index at 8:00 PM, the US Producer Price Index at 9:30 PM (US time), the Bank of Canada’s policy rate decision and statement at 11:00 PM, US weekly crude oil inventories at 11:30 PM,a press conference by BOC Governor McClem at 12:00 a.m., and a U.S. 30-year Treasury auction at 2:00 a.m. We intend to carefully monitor the strength and weakness of European and U.S. currencies as they remain in a tight race.
Author: Keisuke Sakurai
