Should we keep a close eye on the pound’s upward trend following key events?
20.06.2022
- U.S. – Brade: Remarks by the President of the St. Louis Federal Reserve Bank
- Remarks by a Member of the Bank of England’s Monetary Policy Committee
In the U.S. currency markets last weekend, the Dollar Index rose to 105 during U.S. trading hours, making the U.S. dollar the strongest currency. The EUR/USD pair fell by approximately 110 pips from 1.056 to 1.044. However, looking at the 4-hour chart, the pair appears to be forming a double bottom with 1.0349 as the bottom line, so we should exercise caution in determining whether last weekend’s decline will continue.
Among European currencies, the pound has been strengthening against the Australian dollar following last Thursday’s policy rate announcement, which saw the rate raised to 1.25%. The GBP/AUD pair rose by approximately 160 pips, climbing from 1.749 to 1.765.Since GBP/AUD has been forming higher lows on the daily chart with 1.727 as the bottom, we will be watching to see if it breaks above the 1.765 level—which is the recent high on the 4-hour chart and below the daily 75-day moving average—with a solid candle.
Today’s schedule includes the German Producer Price Index at 15:00 (Asia time), Turkey’s foreign visitor arrivals and remarks by UK MPC member Haskell at 17:00 (Europe time), remarks by ECB President Lagarde and UK MPC member Mann at 22:00 (U.S. time), Turkey’s central government debt at 23:30, and U.S. Federal Reserve Governor Brainard at 25:45:St. Louis Fed President, at 02:00, and remarks by German Bundesbank President Nagel at 02:00. After these key events pass, we will be watching closely to see if the pound continues its upward trend.
Author: Keisuke Sakurai
