All eyes are on the pound, which is losing momentum ahead of the policy rate announcement
03.05.2022
- France: Fiscal Balance
- Eurozone Producer Price Index
In the previous session, the U.S. dollar saw mixed performance against both Oceania and European currencies, with the EUR/USD trading in a very narrow range of 1.049–1.054 and the AUD/USD trading between 0.703 and 0.707.However, the Australian dollar has edged slightly higher since today’s RBA policy rate announcement, with AUD/USD rising to as high as 0.714. The currency has continued to rise even after the announcement of a 0.35% rate hike.
Ahead of this week’s Bank of England policy rate announcement, the pound has lost momentum against other European currencies, with the GBP/USD pair falling from 1.259 to 1.247. Although it has recovered half of those losses during today’s Asian trading session, the pair is currently consolidating just above the 20-period moving average, so we will be watching closely to see if it loses momentum again.
Today, during European trading hours, France’s budget balance will be released at 15:45, Germany’s unemployment rate at 16:55, and the UK’s manufacturing PMI (final reading) at 17:30.at 18:00, the Eurozone Producer Price Index and unemployment rate; during U.S. trading hours at 23:00, U.S. manufacturing orders and the JOLTS survey; at 25:30, remarks by BOC Deputy Governor Rogers; and at 6:00 the following day, the release of the RBNZ Financial Stability Report. We will be watching the pound closely as it loses momentum ahead of the policy rate announcement.
Author: Keisuke Sakurai
