Investors should keep an eye on the euro amid concerns over the European economic outlook
28.04.2022
- U.S. Core PCE Deflator
- U.S. Weekly Natural Gas Inventories
The U.S. dollar continued to strengthen against the euro yesterday. The GBP/USD pair fell 90 pips from 1.259 to 1.250. After a period of gradual decline along the daily 20-day moving average (MA), the pair has now deviated significantly from the daily MA and has posted six consecutive bearish candles. Therefore, while keeping an eye on today’s economic data releases during U.S. trading hours, traders should remain vigilant for potential reversal points.
European currencies faced headwinds as concerns over infrastructure persisted following announcements by major countries, including Germany, of phased crude oil embargoes against Russia, and Russia’s threats to cut off gas supplies. The euro fell by approximately 160 pips against the Australian dollar, from 1.494 to 1.477. Market conditions make it difficult for the euro to sustain a rebound.
Today, at 4:00 PM, Turkey’s Economic Confidence Index; at 5:00 PM, the ECB’s Monthly Report; at 9:00 PM, Germany’s Consumer Price Index (flash estimate);at 9:30 PM, U.S. Initial Jobless Claims, U.S. Q1 GDP, U.S. Personal Consumption Expenditures, and U.S. Core PCE Deflator; at 11:30 PM, U.S. Weekly Natural Gas Inventories; at 12:00 AM, the U.S. Kansas City Fed Manufacturing Activity Index; and at 2:00 AM, a U.S. 7-year Treasury auction.We will carefully assess the strength and weakness of various currencies heading into the weekend.
Author: Keisuke Sakurai
