With the ECB meeting next week, all eyes are on the euro, which is gaining strength
03.06.2022
- France: Industrial Production
- U.S. Employment Report
The previous day, the U.S. dollar weakened against the euro, with the EUR/USD pair rising by more than 100 pips from 1.064 to 1.076.This was driven not only by the U.S. ADP employment report released yesterday, which came in significantly below market expectations, but also by U.S. April manufacturing orders, which fell short of forecasts at 0.3%. With the euro continuing its upward trend, we will be watching to see if the EUR/USD pair breaks above 1.078, which is the 75-day moving average (MA) on the daily chart.
Among European currencies, the euro rose against the yen, climbing approximately 130 pips from 138.37 to 139.77. Since the euro/yen pair is rising at a pace that brings it close to this year’s high of 139.96, I’d like to wait and see whether this upward trend continues, while also considering the possibility of a corrective pullback toward the 20-period moving average on the 4-hour chart.
Today, at 15:00 European time, Germany’strade balance at 15:00 during European trading hours; French industrial production and the French manufacturing production index at 15:45; the Turkish consumer price index at 16:00; the German services PMI at 16:55; the Eurozone services PMI at 17:00; the Eurozoneretail sales, and during U.S. trading hours, U.S. employment data at 21:30, the U.S. services PMI at 22:45, the U.S. ISM Non-Manufacturing Index at 23:00, and remarks by U.S. Federal Reserve Vice Chair Brainard at 23:30.We will assess price movements over the weekend while paying close attention to the economic indicators scheduled for release during U.S. trading hours.
Author: Keisuke Sakurai
