Should We Keep an Eye on the Euro's Uptrend?
26.05.2022
- Kansas City Federal Reserve Bank Manufacturing Activity Index
- Remarks by Brainard, the Designated Vice Chair of the Federal Reserve
In the U.S. currency market the previous day, the euro, which had been strengthening, entered a correction phase, and the EUR/USD pair fell by about 100 pips from 1.074 to 1.064.On the 4-hour chart, the EUR/USD pair is finding support at the 20-period moving average (MA), and as it is nearing the completion of a retest of the 200-period simple moving average (SMA), I intend to wait and see whether it will break above the recent high of 1.074 with a real-body candle.
European currencies weakened as the ECB’s Financial Stability Report, released yesterday, stated that “global cost pressures could weaken the economic outlook for the eurozone.”The EUR/JPY pair fell by approximately 120 pips from 136.19 to 134.98. However, it has been trending higher during today’s Asian trading session. From a technical perspective, the EUR/JPY could move in either direction until it breaks decisively above the recent daily high of 138.31, so caution is advised.
Today, during European trading hours, Turkey’s Economic Confidence Index will be released at 16:00, followed by the TCMB’s policy rate decision and statement at 20:00. During U.S. trading hours, Canada’s Retail Sales, U.S. Initial Jobless Claims, U.S. First-Quarter GDP, and U.S. Personal Consumption Expenditures will be released at 21:30,U.S. Core PCE Deflator, at 23:00 U.S. Pending Home Sales,at 11:30 p.m., U.S. weekly natural gas inventories; at midnight, the U.S. Kansas City Fed Manufacturing Activity Index; at 1:00 a.m., remarks by Lael Brainard, the incoming Fed Vice Chair; and at 2:00 a.m., a U.S. 7-year Treasury auction.We will be keeping a close eye on the trend of the euro, which is on the rise.
Author: Keisuke Sakurai
