Should We Keep a Close Eye on the Pound’s Uptrend 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
Last weekend, the U.S. dollar rose to 105 on the Dollar Index during U.S. trading hours, making it 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 Oceania currencies following last Thursday’s policy rate announcement, which raised the rate to 1.25%; the GBP/AUD pair rose by approximately 160 pips from 1.749 to 1.765.Since the GBP/AUD pair has been forming higher lows on the daily chart, with 1.727 as its low, it will be worth watching to see if it can break above the 1.765 level—which is the recent high on the 4-hour chart and just below the daily 75-period moving average—with a solid candlestick body.
Today’s schedule includes the German Producer Price Index at 15:00 during Asian trading hours; Turkey’s foreign visitor arrivals and remarks by UK MPC member Haskell at 17:00 during European trading hours; and at 22:00 during U.S. trading hours, the ECB’sECB President Lagarde’s remarks, UK MPC Member Mann’s remarks, Turkey’s central government debt at 23:30, U.S. Federal Reserve Bank of St. Louis President Bullard’s remarks at 25:45, and German Bundesbank President Nagel’s remarks at 26:00.Once these key events have passed, we will be watching closely to see if the pound continues its upward trend.
Author: Keisuke Sakurai
