Should We Keep an Eye on the U.S. Dollar as the Dollar Index Falls Back to 103?
10.05.2022
- Remarks by Nagel, President of the German Federal Bank
- Kashkari (U.S.): Remarks by the President of the Minneapolis Federal Reserve Bank
In the U.S. currency market the previous day, the Dollar Index, which had been rising, fell to 103, and the EUR/USD pair rose by about 100 pips from 1.049 to 1.059.With yesterday’s rise, the EUR/USD has returned to the 1.047–1.059 range; therefore, if it breaks above this range, 1.059 should be viewed as resistance, and if it breaks below, 1.047 should be viewed as support.
Among European currencies, the pound—which had been losing ground—is beginning to recover, and the GBP/USD pair rebounded, rising from 1.226 to 1.240. From a technical perspective, the GBP/USD pair has deviated from its 20-day moving average, and with the RSI at 30, investors should be cautious about further gains should the rebound continue.
Today’s schedule includes Turkey’s unemployment rate at 16:00, Germany’s ZEW Economic Sentiment Survey at 18:00, the U.S. NFIB Small Business Optimism Index at 19:00, remarks by U.S. Federal Reserve Bank of New York President Williams at 20:40, and remarks by U.S. Federal Reserve Governor Birkin at 22:15:Richmond Fed President’s remarks, at 11:00 p.m. remarks by Germany’s Bundesbank President Nagel, at 2:00 a.m. a U.S. 3-year Treasury auction, remarks by U.S. Federal Reserve Governor Waller, remarks by U.S. Federal Reserve Bank of Minneapolis President Kashkari:President of the Minneapolis Fed, and at 28:00, remarks by U.S. Federal Reserve Governor Bostic, President of the Atlanta Fed. We will be closely monitoring whether today’s remarks from key officials will cause any shift in the faltering U.S. dollar.
Author: Keisuke Sakurai
