Should we be wary of the U.S. dollar, as the Dollar Index has fallen 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 yesterday, the Dollar Index, which had been rising, fell to 103, while 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 a trading range of 1.047–1.059; 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, we should remain cautious about further gains should the rebound continue.
Today’s schedule includes Turkey’s unemployment rate at 4:00 PM, Germany’s ZEW Economic Sentiment Survey at 6:00 PM, the U.S. NFIB Small Business Optimism Index at 7:00 PM, remarks by U.S. Federal Reserve Bank of New York President Williams at 8:40 PM, and remarks by U.S. Federal Reserve Governor Barkin at 10:15 PM.Richmond Fed President, at 11:00 PM: Remarks by Germany’s Bundesbank President Nagel, at 2:00 AM: U.S. 3-year Treasury auction, remarks by U.S. Federal Reserve Governor Waller, and remarks by U.S. Minneapolis Fed President Kashkari, and at 4:00 AM: Remarks by U.S. Atlanta Fed President Bostic.We will closely monitor whether today’s remarks from key officials will shift the direction of the faltering U.S. dollar.
Author: Keisuke Sakurai
