Should We Pay Attention to Comments by MPC Member Pill of the Bank of England?
20.05.2022
- Germany: Producer Price Index
- Remarks by Pill, a Member of the Bank of England’s MPC
The U.S. dollar was the weakest currency the previous day, falling against both the yen and the euro.The U.S. dollar also showed weakness 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 lackluster earnings reports from major retailers.
Among European currencies, the euro and the pound are trading in a tight range; the EUR/GBP pair, which had been rising recently, has settled into a range between 0.844 and 0.849.However, since the EUR/GBP pair 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, assess the pound’s upside potential, and keep a close eye on today’s economic data releases during European trading hours to gauge the market’s direction.
Today, at 15:00 CET, UK retail sales,Germany’s Producer Price Index at 15:00, Switzerland’s Q1 Industrial Production at 15:30, Turkey’s Consumer Confidence Index at 16:00, and remarks by UK MPC member Pill at 16:30. Aside from these, no major economic indicators or key speeches are scheduled during U.S. trading hours.We’ll need to carefully assess whether today’s economic data will cause any changes in the pound, which has been facing resistance on the upside.
Author: Keisuke Sakurai
