Will European currencies, which have been rising against the U.S. dollar, continue to gain ground at the start of the month?

Will European currencies, which have been rising against the U.S. dollar, continue to gain ground at the start of the month?

02.08.2022

U.S. currencies traded lower throughout the day yesterday, despite the revised July U.S. Manufacturing PMI coming in at 52.2, thereby avoiding a drop below 50.GBP/USD rose by about 130 pips from 1.2155 to 1.2293, marking its fourth consecutive day of gains. During today’s Asian session, GBP/USD has continued to rise, supported by the 20-period moving average (MA) on the hourly chart. We will be watching to see if it continues to climb toward the 75-period MA on the daily chart at 1.2337.

European currencies are showing strength against the U.S. dollar, with the EUR/USD pair rising by approximately 70 pips from 1.0204 to 1.0274. The EUR/USD has already hit a new high during today’s Asian trading session, climbing to 1.0293. On the 4-hour chart, the 200-period simple moving average (SMA) is looming overhead, so we will be watching closely to see if the pair breaks above the 200-SMA line at 1.0293.

Today’s schedule includes the UK Nationwide House Price Index at 15:00 (Asia time), the Swiss Manufacturing PMI at 16:30 (Europe time), the U.S. JOLTS Survey at 23:00 (U.S. time), and remarks by U.S. Federal Reserve Bank of Chicago President Evans:Chicago Fed President Evans, at 26:00, remarks by U.S. Cleveland Fed President Mester, at 7:45 the following day, New Zealand’s Q2 unemployment rate, and remarks by U.S. St. Louis Fed President Bullard. It will be worth watching whether European currencies, which have been rising against the U.S. dollar, maintain their momentum and continue to gain ground at the start of the month.