All eyes are on the euro’s price movements at the start of the week during ECB Week
06.06.2022
- Markets in New Zealand and Switzerland are closed for a public holiday
- No major economic indicators are scheduled for release
Last weekend, the U.S. dollar surged following strong employment data, emerging as the strongest currency. However, although the U.S. ISM Non-Manufacturing Index for May, released last Friday, the 3rd, came in at 55.9—its lowest level in a year and three months—it failed to curb the dollar’s strength. Since the USD/JPY pair closed the week with a strong bullish candle, recovering to this year’s high, we will be watching closely to see if the upward trend continues.
European currencies saw the euro come under pressure from the U.S. dollar, with the EUR/USD pair falling by about 60 pips from 1.076 to 1.070. On a daily chart, the pair appears to have shifted into a range-bound market between 1.062 and 1.078—a level slightly higher than that seen in the middle of last month. Therefore, ahead of the ECB’s policy rate announcement this Thursday, we will likely want to monitor the upper and lower bounds of this range for the time being to gauge the market’s direction.
No major economic indicators or key speeches are scheduled for today in either Europe or the U.S.Markets in New Zealand and Switzerland are closed today for public holidays. Looking ahead to the rest of the week, the RBA policy rate announcement in Australia is scheduled for tomorrow, Tuesday the 7th, followed by the ECB policy rate announcement in Europe on Thursday the 9th, and the University of Michigan Consumer Sentiment Index (flash estimate) in the U.S. on Friday the 10th. For now, we will carefully monitor price movements at the start of the week.
Author: Keisuke Sakurai
