Should we keep a close eye on the pound's price movements as the upward trend 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 the U.S. currency market yesterday, 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 an upward trend since bottoming out on April 28, we need to carefully assess whether the USD/JPY will fall further, while also factoring in the U.S. market holiday at the start of the week.
European currencies saw the pound’s upward momentum continue, with GBP/USD rising by approximately 70 pips from 1.255 to 1.262. GBP/USD 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 strength continues.
No major economic indicators are scheduled for release during European trading hours today. However, once U.S. trading begins, the following events are on the agenda: remarks by U.S. Federal Reserve Bank of St. Louis President Bullard at 8:35 p.m., U.S. personal income, personal spending, and the core PCE deflator at 9:30 p.m., and the University of Michigan Consumer Sentiment Index at 11:00 p.m.We will be closely monitoring the pound, as its upward momentum shows no signs of abating.
Author: Keisuke Sakurai
