Will Attention Be Focused on the Content of Financial Policy Reports from Europe and the U.S.?
25.05.2022
- Europe: ECB Releases Financial Stability Report
- Release of the U.S. FOMC Minutes
In the U.S. currency market the previous day, the Dollar Index fell to 101, while the EUR/USD pair continued to rise from 1.066 to 1.074.Although the EUR/USD has broken above the 200-period SMA on the 4-hour chart with a real body candle, the daily 75-period MA is acting as resistance near 1.078, so we need to carefully assess whether the rebound will continue.
European currencies fell against the yen after the PMI (Purchasing Managers' Index) figures released yesterday for Germany, the eurozone, and the UK all came in below market expectations. The euro/yen pair, which had been rising on expectations of a July rate hike, fell from 136.80 to 135.54. Trading remains range-bound with limited upside potential during today’s Asian session.
Today, at 15:00 European time, Germany’s first-quarter GDP will be released, followed by thethe ECB Financial Stability Report, and remarks by ECB President Lagarde; at 20:00, the U.S. MBA Mortgage Applications Index; at 20:05, remarks by Bank of Japan Governor Kuroda; at 21:30, U.S. Durable Goods Orders; at 23:30, U.S. weekly crude oil inventories;at 24:15, remarks by MPC Member Tenreyro (UK); at 25:15, remarks by incoming Fed Vice Chair Brainard (US); at 26:00, a US 5-year Treasury auction; and at 27:00, the release of the FOMC minutes.We should pay close attention to the content of the minutes from both the ECB and the Fed.
