Will the pound, which has been on a downward trend, rebound following the release of economic indicators?
12.08.2022
- Europe: Industrial Production
- University of Michigan Consumer Sentiment Index
The U.S. dollar weakened against the euro yesterday, with the EUR/USD pair rising by about 90 pips from 1.0274 to 1.0364.The U.S. initial jobless claims released yesterday came in at 262,000, compared to the market forecast of 263,000, and had no significant impact on the market. The U.S. Producer Price Index (PPI), also released yesterday, came in at 9.8% year-over-year, falling short of both market expectations and the previous reading.
European currencies saw the GBP/USD pair decline as the pound weakened, dropping from 1.2248 to 1.2162. However, looking at longer-term time frames such as the 4-hour chart and beyond, the market is currently undergoing a correction within an overall uptrend. Therefore, we need to carefully assess whether the pound will regain strength during today’s European and U.S. trading sessions.
Today, during Asian trading hours at 15:00, the UK will release second-quarter GDP, industrial production, manufacturing output, and the trade balance; at 15:45, France will release the consumer price index; and during European trading hours at 16:00, Turkey will release industrial production, followed by the EU’sIndustrial Production, at 21:30 during U.S. trading hours: U.S. Import Price Index, and at 23:00: U.S. University of Michigan Consumer Sentiment Index, as well as remarks by Barkin, President of the Richmond Fed. We will carefully monitor whether the pound, which fell yesterday, will fluctuate and show signs of recovery following today’s economic data releases.
Author: Keisuke Sakurai
