Following yesterday's developments, investors may be wary of comments from ECB President Lagarde
10.06.2022
- Remarks by Nagel, President of the German Federal Bank
- University of Michigan Consumer Sentiment Index (Preliminary Reading)
In the previous session, the U.S. dollar traded in a tight range against both the yen and the pound, with GBP/USD moving within a range of 1.248 to 1.255. GBP/USD has remained in a consolidation phase since the start of the month, and during today’s Asian session, it has shown signs of rebounding from the lower end of the range. We should anticipate a wait-and-see sentiment prevailing until next week’s FOMC and BOE interest rate announcements.
Following the ECB’s announcement yesterday that it would raise interest rates next month, the euro lost ground against the pound. The EUR/GBP pair fell by approximately 100 pips, from 0.859 to 0.848. However, from a technical perspective, the pair remains above the 200-day simple moving average (SMA) on the daily chart and is also holding above the 20-day moving average (MA) on the weekly chart, so we need to assess carefully whether the decline will continue.
Today’s schedule includes Turkey’s unemployment rate at 16:00 CET, Canada’s unemployment rate, net employment change, and first-quarter capacity utilization at 21:30 EST, the U.S. Consumer Price Index at 21:30 EST, remarks by ECB President Lagarde at 22:45 CET, the University of Michigan Consumer Sentiment Index (flash estimate) at 23:00 EST,at 12:00 AM, remarks by German Bundesbank President Nagel; and at 3:00 AM, the U.S. budget balance. As with yesterday, we should remain vigilant regarding the content of ECB President Lagarde’s remarks.
Author: Keisuke Sakurai
