All eyes are on price movements at the start of this event week, which features the announcement of the policy interest rate

All eyes are on price movements at the start of this event week, which features the announcement of the policy interest rate

01.08.2022

Last weekend, the U.S. dollar remained flat, with the Dollar Index hovering around 105.7, while the EUR/USD pair traded in a narrow range between 1.0249 and 1.0146. Although the EUR/USD pair has been moving within this range, it has been forming higher lows on the 4-hour chart. Additionally, a golden cross has formed between the 75-period and 20-period moving averages on the 4-hour chart, so it will be worth watching to see if the euro gradually regains ground against the U.S. dollar.

In the European currency markets, the pound fell sharply against the U.S. dollar but then recovered, resulting in a market where buying and selling pressures were evenly balanced. The GBP/USD pair fell from 1.2245 to 1.2064 before rebounding. With the U.S. July ISM Manufacturing Index set to be released today, we will be watching the strength of the manufacturing sector while closely monitoring the relative strength of the pound against the U.S. dollar.

Today, German retail sales are scheduled for 3:00 PM Asia time, followed by the Turkish Manufacturing PMI at 4:00 PM Europe time, the French Manufacturing PMI at 4:50 PM, the German Manufacturing PMI at 4:55 PM, the Eurozone Manufacturing PMI at 5:00 PM, the UK Manufacturing PMI at 5:30 PM, and the Eurozoneunemployment rate, U.S. Manufacturing PMI at 22:45 during U.S. trading hours, the U.S. ISM Manufacturing Index at 23:00, and U.S. construction spending. In addition, this week is packed with events, including tomorrow’s Australian interest rate decision, Wednesday’s U.S. ADP employment report, and Thursday’s UK interest rate decision. I’d like to start by closely monitoring price movements at the beginning of the week.