Markets may be watching the euro's movements ahead of the ECB meeting
08.06.2022
- UK Construction PMI
- U.S. MBA Mortgage Applications Index
Yesterday, the U.S. dollar weakened against European currencies, with GBP/USD rising 170 pips from 1.243 to 1.259.The US dollar came under pressure as the pound strengthened following the release of the UK Services PMI, which came in at 53.4 versus the market forecast of 51.8. However, since the GBP/USD pair is trading within a range on the daily chart, with a lower bound of 1.243 and an upper bound of 1.259, we should exercise caution in determining whether the upward trend will continue.
European currencies are showing a slight bullish trend ahead of tomorrow’s ECB policy rate announcement, with the euro/dollar pair rising from 1.065 to 1.071. However, as the pair is being capped by the daily 75-day moving average (MA), the focus will be on whether the decline stops around 1.066, near the daily 20-day MA. For now, we will be watching closely to see if the pair can break above the daily 75-day MA at 1.077 with a solid candle.
Today’s schedule includes the Swiss unemployment rate at 14:45 (Asia time), German industrial production and UK Halifax house prices at 15:00, and the French trade balance and current account balance at 15:45. During European trading hours, Bank of Japan Governor Kuroda will speak at 16:35, followed by UKConstruction PMI, at 17:30 UK Construction PMI, at 18:00 Eurozone Q1 GDP, at 20:00 US MBA Mortgage Applications Index, at 23:00 US Wholesale Inventories, at 23:30 US Weekly Crude Oil Inventories, and at 26:00 US 10-Year Treasury Auction. Ahead of tomorrow’s ECB meeting, we will be closely monitoring the euro’s movements to see how prices develop.
Author: Keisuke Sakurai
