Will the U.S. dollar rise as the Dollar Index recovers to 102?
07.06.2022
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In the U.S. currency market yesterday, the Dollar Index recovered to 102.6, while the EUR/USD fell by approximately 80 pips from 1.075 to 1.067. From a technical perspective, the EUR/USD is forming a head-and-shoulders pattern on the 4-hour chart and is currently being capped by the 75-day moving average on the daily chart. If the U.S. dollar strengthens following today’s economic data releases during U.S. trading hours, we should be on the lookout for further declines.
Among European currencies, the euro remained in a stalemate against the modestly rising Oceania currencies, with the EUR/AUD pair trading in a range between 1.481 and 1.491. On the daily chart, the pair is entering a consolidation phase characterized by lower highs and higher lows, leading to a wait-and-see attitude ahead of the ECB’s policy rate announcement scheduled for the day after tomorrow.
Today’s schedule includes German manufacturing orders and UK Halifax house prices at 15:00 CET, the UK services PMI at 17:30 CET, and South Africa’s Q1 GDP at 18:30 CET, followed by the Canadian trade balance and U.S. trade balance at 21:30 EST,at 11:00 PM, the Canadian Ivey PMI; at 2:00 AM, the U.S. 3-year Treasury auction; and at 4:00 AM, U.S. consumer credit balances. We need to carefully assess whether the momentum of the rising U.S. dollar will continue.
Author: Keisuke Sakurai
