Market participants may be on the lookout for price fluctuations caused by position adjustments over the weekend

Market participants may be on the lookout for price fluctuations caused by position adjustments over the weekend

22.04.2022

In yesterday’s U.S. currency trading, the USD/JPY pair remained in a stalemate against the yen, trading within a range of 127.81 to 128.69. This range-bound movement has continued into today’s Asian session, with the 20-period moving average on the 4-hour chart acting as a support line, and the market remains in a state of deadlock. However, given reports that the U.S.-Japan finance ministers’ meeting featured positive discussions regarding the possibility of currency intervention, we should also keep the possibility of yen appreciation in mind.

European currencies rose yesterday as ECB President Lagarde stated that she would “outline the path for interest rates” at the June ECB Governing Council meeting, hinting at a potential rate hike. As a result, the euro rose by approximately 110 pips against the U.S. dollar, climbing from 1.082 to 1.093. However, the pair subsequently retraced its gains and is currently trading around 1.084 as it searches for direction.

Today, during European trading hours, the French Manufacturing/Services PMI (flash estimate) will be released at 16:15, the German Manufacturing/Services PMI (flash estimate) at 16:30, and the Eurozone Manufacturing/Services PMI (flash estimate) at 17:00.at 17:30 UK Manufacturing/Services PMI (flash estimates), and once U.S. trading hours begin, at 21:30 Canadian Retail Sales, at 22:00 remarks by ECB President Lagarde, at 22:45 U.S. Manufacturing/Services PMI, and at 23:30 remarks by BOE Governor Bailey.We will be closely monitoring how the foreign exchange market moves over the weekend.