All eyes are on the direction of the euro, which is showing strength against the U.S. dollar
17.06.2022
- Remarks by MPC Member Tenreiro of the UK
- U.S. Leading Economic Index
Yesterday, the U.S. dollar weakened due to a decline in the 10-year Treasury yield and the dollar index, while GBP/USD rose by approximately 360 pips from 1.2040 to 1.2398.Yesterday’s Bank of England (BOE) policy rate announcement, which included a rate hike to 1.25%, led to a sharp rise in GBP/USD. However, during today’s Asian session, the pair has pulled back, with the daily 20-day moving average acting as resistance. We will closely monitor whether it reaches the recent high of 1.2616.
Among European currencies, the euro strengthened against the U.S. dollar, with the EUR/USD pair rising by approximately 220 pips from 1.0380 to 1.0600. The pair has gained momentum to break above the 200-period simple moving average (SMA) on the hourly chart. From a technical perspective, the EUR/USD pair appears to be forming a double bottom on the daily chart, so we will be watching closely to see if it can rise to the recent high of 1.0772.
Today’s schedule includes a press conference by Bank of Japan Governor Kuroda at 3:30 p.m. (Asia time), remarks by MPC member Tenreiro at 5:30 p.m. (Europe time), the final reading of the Eurozone Consumer Price Index at 6:00 p.m.,during U.S. trading hours at 21:30: Canada’s Industrial Product Prices, Canada’s Raw Materials Price Index, and Canada’s International Securities Turnover; at 21:45: remarks by U.S. Federal Reserve Chair Powell; at 22:15: U.S. Industrial Production and U.S. Capacity Utilization; at 23:00: U.S. Leading Economic Index; and at 23:30: remarks by UK MPC member Pill.We will carefully monitor currency strength and weakness over the weekend. We will pay close attention to the direction of the euro, which is showing strength against the US dollar.
Author: Keisuke Sakurai
