Market participants may be on alert for significant price movements as U.S. trading hours approach
27.04.2022
- France: Consumer Confidence Index
- U.S. Existing Home Sales Pending
Yesterday, the U.S. dollar strengthened against the euro, with the EUR/USD pair falling by about 100 pips from 1.073 to 1.063. From a technical perspective, the EUR/USD pair continues to decline as it is capped by the 20-period moving average on the hourly chart. We will assess whether this downward trend will continue by analyzing today’s economic data releases.
Among European currencies, the pound was the weakest, with GBP/USD falling by about 200 pips from 1.277 to 1.255. GBP/USD is currently hitting new lows for the year and has entered a support-free zone even on the weekly chart. Ahead of next week’s Bank of England interest rate announcement, we should be wary of further declines in the pound depending on currency strength.
Today, the French Consumer Confidence Index is scheduled for 3:45 PM, the UK CBI Retail Trade Survey at 7:00 PM, the US MBA Mortgage Applications Index at 8:00 PM, US Wholesale Inventories (flash estimate) at 9:30 PM,at 11:00 PM, US Pending Home Sales; at 11:30 PM, US Weekly Crude Oil Inventories; at 1:00 AM, US 5-Year Treasury Auction; and at 7:45 AM the following day, NZ Trade Balance. We should be on the lookout for significant price movements across various currencies as we transition from European to US trading hours.
