Should we keep a close eye on the direction of the pound, which is rebounding?
07.07.2022
- U.S. Trade Balance
- U.S. Weekly Natural Gas Inventories
Yesterday, the U.S. dollar showed signs of strength against European currencies, with GBP/USD falling approximately 110 pips from 1.0276 to 1.0161. GBP/USD continues to decline along the 20-period moving average on the hourly chart and has been hitting new lows for the year. Since the pair has already entered a support-free zone on the weekly chart, we will be watching closely to see if the dollar’s strength continues and drives the pair lower.
European currencies are trading lower, with the pound weakening amid mounting calls for British Prime Minister Johnson to step down; the GBP/JPY pair fell by approximately 2.1 yen, from 162.554 to 160.389. However, the pair has rebounded during today’s Asian trading session and has already broken above the 20-period moving average (MA). We will be watching closely to see if it continues to rise and extends its gains toward the 200-period simple moving average (SMA) around 164.300.
Today’s schedule includes German industrial production and UK Halifax house prices at 15:00 Asia time; the release of the ECB meeting minutes and U.S. Challenger job cuts at 20:30 Europe time; and Canadian trade balance, U.S. initial jobless claims, and U.S. trade balance at 21:30 U.S. time.at 10:00 PM, remarks by a member of the UK MPC; at 11:00 PM, the Canadian Ivey PMI; at 11:30 PM, U.S. weekly natural gas inventories; at 12:00 AM, U.S. weekly crude oil inventories; at 1:05 AM, remarks by UK MPC member Pill; and at 2:00 AM, remarks by U.S. Federal Reserve Bank of St. Louis President Bullard.We will be closely watching the direction of the pound, which is rebounding and rising.
Author: Keisuke Sakurai
