All eyes are on whether the euro, which has been trading lower, will recover during U.S. trading hours.
30.06.2022
- UK First-Quarter GDP (Final Figures)
- U.S. Core PCE Deflator
The previous day, the U.S. dollar surged sharply 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 fallen by half of its recent gain. Since the pair could resume its downward trend after a corrective rebound, 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 central bank governors at the ECB Forum, with the euro falling against the U.S. 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, at 15:00 during Asian trading hours, the UK’s first-quarter GDP (final reading),the UK’s Q1 current account balance, and German retail sales during Asian trading hours; the French Producer Price Index at 15:45 during European trading hours; the Swiss KOF Leading Index and trade balance at 16:00; the German unemployment rate at 16:55; the Eurozoneunemployment rate, at 21:30 during U.S. trading hours: Canada’s GDP, U.S. personal income, and the U.S. core PCE deflator; at 22:45: the U.S. Chicago Purchasing Managers’ Index; 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
