Should We Keep an Eye on the Direction of the U.S. Dollar, Which Is Finding Support at Lower Levels?
19.05.2022
- Kashkari (U.S.): Remarks by the President of the Minneapolis Federal Reserve Bank
- Canada: Raw Materials Price Index
In the previous day’s trading, the U.S. dollar strengthened against the euro, causing the EUR/USD pair to fall from 1.056 to 1.045.Since the EUR/USD pair continues to decline on the daily chart, with its upside capped by the 20-day moving average (MA), we should remain cautious about the downtrend until the price breaks above 1.056—which is near the daily 20-day MA—with a solid candlestick body.
Pressured by the U.S. dollar’s firm performance, European currencies fell, with GBP/USD dropping approximately 170 pips from 1.250 to 1.233. Although GBP/USD rose above its recent high of 1.239 on the 4-hour chart, it pulled back yesterday.Until the pair breaks above this month’s high of 1.263, the downward trend will remain intact, so we will be watching closely to see if it can break above that level.
Today’s schedule includes the UK CBI Business Survey at 19:00 European time, the release of the ECB Governing Council meeting minutes at 20:30, and at 21:30 U.S. time, the Canadian Industrial Product Prices, the Canadian Raw Materials Price Index, U.S. Initial Jobless Claims,the U.S. Philadelphia Fed Business Outlook Index at 21:30, U.S. existing home sales, the U.S. Leading Economic Index, and U.S. weekly natural gas inventories at 23:00, and remarks by U.S. Federal Reserve Bank of Minneapolis President Kashkari at 29:00.We will be watching the direction of the U.S. dollar, which has been holding steady.
Author: Keisuke Sakurai
