Should We Pay Close Attention to ECB President Lagarde’s Remarks on Interest Rate Hikes?
01.06.2022
- Remarks by ECB President Lagarde
- U.S. – Brade: Remarks by the President of the St. Louis Federal Reserve Bank
The U.S. dollar strengthened against the euro yesterday, with the EUR/USD pair falling 100 pips from 1.078 to 1.067.However, from a technical perspective, the pair appears to be finding support at the 200 EMA on the 4-hour chart, so we will be watching to see if the decline continues or if the pair first breaks below the recent low of 1.064.
European currencies fell against the U.S. dollar despite the fact that the Eurozone’s May consumer price index, released yesterday, hit a record high of 8.1%, exceeding the market forecast of 7.7%.GBP/USD fell 90 pips from 1.265 to 1.255 and is testing lower levels during today’s Asian trading session. We will be watching closely to see if GBP/USD finds support near the 20-day moving average (MA) at 1.253.
Today’s schedule includes the UK Nationwide House Price Index and German retail sales at 16:00 European time; the Swiss Manufacturing PMI at 16:30; the UK Manufacturing PMI at 17:30; and, at 20:00 U.S. time, the ECB’sECB President Lagarde’s remarks, the U.S. MBA Mortgage Applications Index, at 23:00 the Bank of Canada’s policy rate decision and statement, the U.S. ISM Manufacturing PMI, at 24:30 remarks by U.S. New York Fed President Williams, at 26:00 remarks by U.S. Federal Reserve’s Brade:St. Louis Fed President, and at 28:00, the U.S. Federal Reserve’s Beige Book. We should pay close attention to ECB President Lagarde’s remarks to see how European currencies, which have been weakening against the U.S. dollar, will react to today’s European and U.S. speeches.
Author: Keisuke Sakurai
