Market Participants to Keep a Close Eye on the Direction of the Euro, Which Is Trading Weakly at the Start of the Week
11.07.2022
- Remarks by Nagel, President of the German Federal Bank
- U.S. 3-Year Treasury Auction
Last weekend, the U.S. dollar strengthened following the release of positive U.S. employment data, making it the strongest currency. The AUD/USD pair fell from 0.6861 to 0.6791.The pair continues to decline, with its upside capped by the 75-period moving average on the 4-hour chart. The fact that the U.S. unemployment rate remained at 3.6% for the third consecutive month—indicating that the job market has not slowed—was another factor contributing to the dollar’s strength. The yield on the 10-year U.S. Treasury note is trading in the 3.08% range.
Among European currencies, the pound—which had been strengthening since the announcement of British Prime Minister Johnson’s resignation—is now trading in a tight range against the euro, with the EUR/GBP pair fluctuating between 0.8441 and 0.8475.On the daily chart, the 200-day SMA is acting as a support level at the lower end, so it will be worth watching to see if a rebound occurs and the euro recovers.
Today, the following events are scheduled: remarks by Bank of England Governor Bailey at 23:15 U.S. time, remarks by German Bundesbank President Nagel at 25:30, a U.S. 3-year Treasury auction at 26:00, and remarks by New York Fed President Williams at 27:00.This week, in addition to policy rate announcements from New Zealand and Canada, the U.S. CPI report is scheduled for release, so we should be on guard for sharp price movements triggered by these economic indicators. First, we’ll be keeping a close eye on the direction of the euro, which has been trading weakly at the start of the week.
Author: Keisuke Sakurai
