Should We Keep a Close Eye on the Pound's Price Movements as the Uptrend Continues?
27.05.2022
- University of Michigan Consumer Sentiment Index
- U.S. – Brade: Remarks by the President of the St. Louis Federal Reserve Bank
In U.S. currency trading the previous day, the Dollar Index fell slightly to 101.5, and the USD/JPY pair dropped by about 100 pips from 127.56 to 126.54.Since the Yen Index has been on a recovery trend since bottoming out on April 28, we need to carefully assess whether USD/JPY will fall further, while also factoring in the U.S. market closure at the start of the week.
Among European currencies, the pound continued its upward momentum, with the GBP/USD pair rising by about 70 pips from 1.255 to 1.262.The GBP/USD pair rose further during today’s Asian trading session, climbing to 1.266. Since it has surpassed its recent high on the daily chart and set a new high for the month, we will be watching closely to see if the pound’s momentum continues.
No major economic indicators are scheduled for release during European trading hours today. Once U.S. trading begins, we’ll see remarks by U.S. Federal Reserve Bank of St. Louis President Bullard at 20:35, followed by U.S. personal income, U.S. personal spending, the U.S. core PCE deflator, and U.S. wholesale inventories (flash estimate) at 21:30,and at 23:00, the University of Michigan Consumer Sentiment Index. We will be closely monitoring the pound, as its upward momentum shows no signs of abating.
Author: Keisuke Sakurai
