All eyes are on whether the euro, which has been weakening, will recover during U.S. trading hours
30.06.2022
- UK Q1 GDP (final figures)
- U.S. Core PCE Deflator
Yesterday, the U.S. dollar surged on hawkish comments from Fed Chair Powell, causing the GBP/USD pair to fall from 1.221 to 1.210. On the 4-hour chart, GBP/USD has already retraced half of its recent gains, and since it could resume its downward trend after a corrective rally, we should keep an eye on the 1.202 level should the pair continue to decline.
European currencies weakened toward the end of the U.S. trading session, partly due to remarks made by the ECB president at the ECB Forum, with the euro falling against the dollar from 1.0534 to 1.0432. Yesterday, ECB President Lagarde noted that the eurozone’s structure differs from that of other major economies and indicated that “it is difficult to determine the pace of rate hikes in advance,” while also hinting at the possibility of a significant rate hike at the September meeting.
Today, during Asian trading hours at 15:00, we have the UK’s Q1 GDP (final reading), UK Q1 current account balance, and German retail sales; during European trading hours at 15:45, the French Producer Price Index; at 16:00, the Swiss KOF Leading Index and trade balance; at 16:55, the German unemployment rate; and at 18:00, the Eurozoneunemployment rate, at 21:30 during U.S. trading hours: Canada’s GDP, U.S. personal income, and U.S. core PCE deflator; at 22:45: the U.S. Chicago PMI; and at 23:30: U.S. weekly natural gas inventories. We will be watching closely to see if the euro, which has been weakening, will recover during U.S. trading hours.
Author: Keisuke Sakurai
