Market participants are likely to keep a close eye on the euro’s movements ahead of tomorrow’s ECB policy rate announcement
20.07.2022
- U.S. Existing Home Sales
- U.S. 20-Year Treasury Auction
In the U.S. currency market yesterday, the Dollar Index fell to 106.5, while the EUR/USD pair rose by approximately 140 pips from 1.0120 to 1.0268. The EUR/USD has broken well above the 4-hour 75-MA and is now rising toward its next target, the 4-hour 200-EMA at 1.0341. We will monitor the situation closely, paying close attention to the euro’s price action ahead of the ECB meeting to see if this upward trend continues.
European currencies are trading higher ahead of tomorrow’s ECB policy rate announcement, with the euro/yen pair rising from 139.701 to 141.540. The ECB is expected to announce its first rate hike in 11 years at tomorrow’s policy meeting, and buying has been driven by expectations of a rate hike. Depending on tomorrow’s outcome, there is a possibility of a “sell-the-fact” reaction, so we should pay close attention to today’s price movements.
Today, the UK Consumer Price Index, Retail Price Index, and Producer Price Index are scheduled for 3:00 PM Asia time; the Turkish Consumer Confidence Index at 4:00 PM Europe time; the South African Consumer Price Index at 5:00 PM; the US MBA Mortgage Applications Index at 8:00 PM; and the Canadian Consumer Price Index and Industrial Product Prices at 9:30 PM US time.at 11:00 PM, U.S. Existing Home Sales; at 11:30 PM, U.S. Weekly Crude Oil Inventories; and at 2:00 AM, a U.S. 20-Year Treasury Auction. With the ECB policy rate announcement scheduled for tomorrow, we will be closely monitoring the euro’s movements.
Author: Keisuke Sakurai
