Should We Pay Attention to Key Remarks by Central Bank Governors in the U.K., U.S., and Europe?
29.06.2022
- Remarks by Bank of England Governor Bailey
- Remarks by Fed Chair Powell
The U.S. dollar traded firmly against the Oceania, European, and Japanese currencies the previous day, 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 session 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 its upward parallel channel—we will be closely monitoring whether it returns to its uptrend.
European currencies—both 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 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 hit a new high for the year but then retreated, falling from 144.276 to 142.801.
Today’s schedule includes Turkey’s Economic Confidence Index at 16:00 European time, the U.S. MBA Mortgage Applications Index at 20:00, Germany’s Consumer Price Index (flash estimate) at 21:00, and—during U.S. trading hours—U.S. first-quarter GDP and personal consumption at 21:30,U.S. Core PCE Deflator at 21:30 U.S. time; remarks by Bank of England Governor Bailey, European Central Bank President Lagarde, and Federal Reserve Chair Powell at 22:00; U.S. weekly crude oil inventories at 23:30;at 24:30, remarks by U.S. Federal Reserve President Mester (Cleveland Fed); and at 26:05, remarks by U.S. Federal Reserve President Bullard (St. Louis Fed). Keep an eye on the key speeches starting at 22:00 tonight.
Author: Keisuke Sakurai
