Investors should keep an eye on remarks from key central bank officials in the UK, US, and Europe

Investors should pay attention to remarks by key central bank officials in the UK, US, and Europe

29.06.2022

Yesterday, the U.S. dollar strengthened against the currencies of Oceania, Europe, and Japan, emerging as the strongest currency. The rise against the euro was particularly notable, with the EUR/USD pair falling approximately 100 pips from 1.0606 to 1.0502.The sharp decline during yesterday’s U.S. trading hours was notable, and similar price movements are being seen during today’s Asian session. However, since the EUR/USD pair has rebounded at 1.0502—the lower boundary of the upward-sloping parallel channel—we will be watching closely to see if it returns to an uptrend.

European currencies, including the euro and the pound, fell against the U.S. dollar.Yesterday, ECB President Lagarde stated, “We are prepared to raise rates by 0.25 percentage points at the July meeting, but we are ready to take more decisive action if necessary to curb inflation.” Despite expectations of a rate hike, the euro fell against both the U.S. dollar and the yen. The euro/yen pair briefly touched a new high for the year but then retreated, falling from 144.276 to 142.801.

Today’s schedule includes Turkey’s Economic Sentiment Index at 16:00 CET, the U.S. MBA Mortgage Applications Index at 20:00 CET, and Germany’s Consumer Price Index (flash estimate) at 21:00 CET, followed by the U.S. Q1 GDP, U.S. Personal Consumption Expenditures, and U.S. Core PCE Deflator at 21:30 ET,at 10:00 PM UK time: remarks by BOE Governor Bailey, ECB President Lagarde, and Fed Chair Powell; at 11:30 PM: US weekly crude oil inventories; at 12:30 AM: remarks by Cleveland Fed President Mester; and at 2:05 AM: remarks by St. Louis Fed President Bullard.Keep an eye on the key speeches starting at 10:00 PM tonight.