Market Participants on Alert for Price Fluctuations Due to Weekend Position Adjustments
22.04.2022
- Total Retail Sales
- Remarks by ECB President Lagarde
In the previous day’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 (MA) on the 4-hour chart acting as a support line, and the market remains in a stalemate. 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.
Yesterday, European currencies rose as ECB President Lagarde stated at the June ECB Governing Council meeting that she would “outline the path for interest rates,” hinting at a potential rate hike; as a result, the euro rose against the U.S. dollar by approximately 110 pips, from 1.082 to 1.093.However, the pair subsequently fluctuated back and forth 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 5:30 p.m. UK time, the UK Manufacturing/Services PMI (flash estimate), followed by Canadian Retail Sales at 9:30 p.m. US time,at 10:00 p.m., a speech by ECB President Lagarde, at 10:45 p.m., U.S. Manufacturing and Services PMIs, and at 11:30 p.m., a speech by BOE Governor Bailey. We will be closely monitoring how the foreign exchange market moves over the weekend.
