Keep an eye on the euro, which is facing resistance at higher levels
16.05.2022
- Remarks by Ramsden, Deputy Governor of the Bank of England
- Canada: Manufacturing Shipments
Last weekend, the U.S. dollar weakened against the Oceania currencies, with the AUD/USD pair rebounding by 100 pips from 0.685 to 0.695. However, the Australian dollar’s strength did not last, and during today’s Asian trading session, it has fallen by about half of its earlier gains, currently trading around 0.689. Against European currencies, the dollar has strengthened, with the EUR/USD pair falling to 1.034.
Although European industrial production figures released last Friday showed an improvement over forecasts, coming in at -1.8%, the euro faced resistance at higher levels, and the euro/pound pair fell slightly from 0.852 to 0.848. Given that the euro is also weakening against the pound, which has recently been facing resistance at higher levels, we should remain vigilant for further declines in response to headline news, including geopolitical risks.
Today’s schedule includes Turkey’s current account balance at 4:00 PM, the Eurozone’s trade balance at 6:00 PM, Canada’s housing starts at 9:15 PM, Canada’s manufacturing shipments and wholesale sales, and the New York Fed Manufacturing Index at 9:30 PM, followed by remarks from Williams at 9:55 PM:Remarks by NY Fed President Williams, at 10:00 PM: Canada’s Existing Home Sales, at 11:15 PM: Remarks by Bank of England Governor Bailey, Remarks by Bank of England Deputy Governor Ramsden, and Remarks by MPC Member Haskell, and at 1:00 AM: U.S. Foreign Investment in U.S. Securities. Keep an eye on the direction of the euro, which is facing resistance on the upside.
Author: Keisuke Sakurai
