Investors should keep an eye on PMI releases from European to U.S. trading hours
22.07.2022
- European Manufacturing/Services PMI
- Total Retail Sales
In the U.S. currency market yesterday, the corrective decline paused, and GBP/USD traded in a range between 1.1889 and 1.2003. The U.S. initial jobless claims released yesterday came in at 251,000, exceeding the market forecast of 240,000, marking a third consecutive week of deterioration; however, the market remained firm against the euro.During today’s Asian session, the pair is attempting to move lower around the 1.1959 level. Since the 75-day and 20-day moving averages on the 4-hour chart appear poised to form a death cross, caution is warranted regarding a potential decline.
European currencies saw the euro strengthen temporarily yesterday following a significant rate hike—the first in 22 years—which raised the policy rate to 0.50%. However, the currency fell back following ECB President Lagarde’s press conference, and the EUR/USD pair fluctuated between 1.027 and 1.015.The EUR/USD pair is finding support at the 20-period moving average (MA) on the 4-hour chart, but on the daily chart, the 20-period MA is capping the upside, so we should exercise caution in assessing the direction of the market.
Today, UK retail sales are scheduled for 3:00 PM during Asian trading hours, followed by French manufacturing and services PMIs at 4:15 PM during European trading hours, German manufacturing and services PMIs at 4:30 PM, Eurozone manufacturing and services PMIs at 5:00 PM, UK manufacturing and services PMIs at 5:30 PM, and Canadian retail sales at 9:30 PM during US trading hours.and at 10:45 PM during U.S. trading hours, Canadian retail sales. I plan to monitor price movements while paying close attention to the PMI releases from European through U.S. trading hours.
Author: Keisuke Sakurai
