Will attention be focused on the content of monetary policy reports from Europe and the U.S.?
25.05.2022
- Europe: ECB Publishes Financial Stability Report
- Release of the FOMC Minutes
In yesterday's U.S. currency markets, 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, the 75-period MA on the daily chart is acting as resistance near 1.078, so we need to assess carefully whether the upward 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’s schedule includes the release of Germany’s Q1 GDP at 15:00 CET, the ECB’s Financial Stability Report at 17:00 CET, remarks by ECB President Lagarde at 17:00 CET, the U.S. MBA Mortgage Applications Index at 20:00 CET, remarks by BOJ Governor Kuroda at 20:05 CET, U.S. Durable Goods Orders at 21:30 CET, and U.S. Weekly Crude Oil Inventories at 23:30 CET.at 12:15 a.m. UK MPC Member Tenreyro’s remarks, at 1:15 a.m. US incoming Fed Vice Chair Brainard’s remarks, at 2:00 a.m. US 5-year Treasury auction, and at 3:00 a.m. US FOMC minutes release. Keep a close eye on the content of the minutes from both the ECB and the Fed.
Author: Keisuke Sakurai
