Caution Over Significant Price Movements During U.S. Trading Hours?
27.04.2022
- France: Consumer Confidence Index
- U.S. Existing-Home Sales Pending
Yesterday, the U.S. dollar showed signs of strength 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-less zone even on the weekly chart.Ahead of next week’s Bank of England policy rate announcement, we should be wary of further declines in the pound due to currency strength dynamics.
Today, the French Consumer Confidence Index is scheduled for 15:45, the UK CBI Retail Trade Survey for 19:00, the U.S. MBA Mortgage Applications Index for 20:00, U.S. Wholesale Inventories (Preliminary) for 21:30,at 11:00 PM, U.S. Pending Home Sales; at 11:30 PM, U.S. Weekly Crude Oil Inventories; at 1:00 AM, U.S. 5-Year Treasury Auction; and at 7:45 AM the following day, New Zealand’s Trade Balance. Be on the lookout for significant price movements across various currencies as we transition from European to U.S. trading hours.
