Attention is turning to the euro’s price movements, which stand in contrast to the sluggish U.S. dollar
05.05.2022
- U.S. Initial Jobless Claims
- Bank of England Announces Policy Rate and Statement
In yesterday’s U.S. currency trading, the dollar lost momentum after the FOMC meeting all but ruled out a 0.75% rate hike at the next meeting, causing the euro/dollar pair to rise by about 120 pips. The euro/dollar is currently trading around 1.061 and is showing signs of attempting to rise further during today’s Asian 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 finding support at 136.60. During today’s Asian trading session, the EUR/JPY recovered to 137.51 and is now on track to reach 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 CET, the Turkish consumer price index at 16:00, the UK services PMI at 17:30, and the UKthe BOE policy rate and statement, a press conference by BOE Governor Bailey at 20:30, and U.S. Challenger job cuts. Later, during U.S. trading hours at 21:30, U.S. initial jobless claims and Q1 nonfarm labor productivity are scheduled. We will be watching the direction of the euro, which is currently showing strength.
Author: Keisuke Sakurai
