Attention May Turn to the Euro’s Price Movements, Which Contrast with the Sluggish U.S. Dollar
05.05.2022
- U.S. Initial Unemployment Insurance Claims
- UK: BOE Policy Rate and Statement Announcement
In yesterday’s U.S. currency trading, the U.S. dollar lost momentum after the FOMC all but ruled out a 0.75% rate hike at its next meeting, causing the EUR/USD pair to rise by about 120 pips. The EUR/USD is currently trading around 1.061 and is showing signs of attempting to rise further during today’s Asian trading session.At yesterday’s FOMC meeting, as expected by the market, a 0.5% rate hike was implemented, bringing the policy rate to 1%.
European currencies moved in contrast to the weakening U.S. dollar; while the USD/JPY fell, the EUR/JPY held its ground and rebounded after hitting a low of 136.60.During today’s Asian trading session, the euro/yen pair recovered to 137.51 and is now moving toward its next target of 137.94 on the daily chart.
Today’s schedule includes French industrial production and the French manufacturing production index at 15:45 European time; the Turkish consumer price index at 16:00; the UK services PMI at 17:30; and at 20:00, the UKthe Bank of England’s policy rate and statement, a press conference by Bank of England Governor Bailey at 20:30, and the U.S. Challenger layoff forecast. Later, during U.S. trading hours at 21:30, U.S. initial jobless claims and first-quarter nonfarm labor productivity figures are scheduled for release.We’ll be watching to see where the euro, which is currently showing strength, heads next.
Author: Keisuke Sakurai
