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 at the start of the month?

02.08.2022

U.S. currencies traded weakly throughout the day yesterday, even though the revised U.S. July Manufacturing PMI came in at 52.2, 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 trading session, GBP/USD has continued to rise, supported on the downside by the 20-period moving average (MA) on the hourly chart. It will be worth watching whether the pair 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 euro/dollar pair rising by about 70 pips from 1.0204 to 1.0274.The EUR/USD pair has already hit a new high during today’s Asian trading session, rising to 1.0293. On the 4-hour chart, the 200 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:remarks by the President of the Chicago Fed, at 26:00 remarks by U.S. Federal Reserve President Mester of the Cleveland Fed, at 7:45 the following day New Zealand’s second-quarter unemployment rate, and remarks by U.S. Federal Reserve President Bullard of the St. Louis Fed.It will be interesting to see whether European currencies, which have been rising against the U.S. dollar, can maintain their momentum and continue to gain ground at the start of the month.