Following yesterday's developments, investors may be wary of remarks by ECB President Lagarde
10.06.2022
- Remarks by Nagel, President of the German Central Bank
- University of Michigan Consumer Sentiment Index (Preliminary Reading)
In the previous day’s trading, the U.S. dollar was in a stalemate against both the yen and the pound, with GBP/USD trading within a range of 1.248–1.255. GBP/USD has remained in a consolidation phase since the start of this month, and during today’s Asian session, it has shown signs of rebounding from the lower end of the range.We should factor in the possibility that a wait-and-see sentiment may prevail until next week’s FOMC and BOE policy rate announcements.
Following yesterday’s ECB Governing Council announcement of an interest rate hike next month, the euro lost ground against the pound as well.The EUR/GBP pair fell by about 100 pips, from 0.859 to 0.848. However, from a technical perspective, the pair remains above the 200-day SMA on the daily chart and is holding above the 20-day MA on the weekly chart, so we need to carefully assess whether the decline will continue.
Today’s schedule includes Turkey’s unemployment rate at 16:00 European time; Canada’s unemployment rate, net employment change, and first-quarter capacity utilization rate, as well as the U.S. Consumer Price Index, at 21:30 U.S. time; and at 22:45 European time,remarks by ECB President Lagarde, at 23:00 the U.S. University of Michigan Consumer Sentiment Index (preliminary), at 24:00 remarks by German Bundesbank President Nagel, and at 27:00 the U.S. budget balance.As with yesterday, we should remain cautious regarding the content of ECB President Lagarde’s remarks.
Author: Keisuke Sakurai
