Should we pay attention to the remarks made by MPC member Pill?

Should we pay attention to the remarks made by MPC member Pill?

20.05.2022

The U.S. dollar was the weakest currency the previous day, falling against both the yen and the euro. It also weakened against the pound, which continues to face resistance on the upside, with the GBP/USD pair rising by approximately 200 pips from 1.233 to 1.252. The rise was particularly pronounced during U.S. trading hours, and the dollar’s resistance on the upside became especially evident, partly due to the impact of disappointing earnings reports from major retailers.

Among European currencies, the euro and the pound are trading in a tight range, with the EUR/GBP pair—which had been rising recently—now moving within a range of 0.844 to 0.849. However, since the EUR/GBP is trading above the 20-period moving average on the 4-hour chart and has found support at lower levels, we will monitor whether the upward trend continues, while assessing the pound’s upside potential and keeping a close eye on today’s economic data releases during European trading hours to gauge the market’s direction.

Today, aside from the UK retail sales and German producer price index scheduled for 3:00 PM European time, Swiss first-quarter industrial production at 3:30 PM, the Turkish consumer confidence index at 4:00 PM, and remarks by MPC member Pill at 4:30 PM, no major economic indicators or key speeches are scheduled during US trading hours.We will carefully assess whether today’s economic data releases will shift the pound, which has been facing resistance on the upside.