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 previous day, the U.S. dollar weakened against the euro, 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.
Among European currencies, the GBP/USD pair fell 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 pair is currently in a corrective phase 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, at 15:00 Asia time, the UK will release its second-quarter GDP, industrial production, manufacturing output, and trade balance; at 15:45, France will release its consumer price index; during European trading hours, Turkey will release its industrial production at 16:00, and at 18:00, the EU will releaseIndustrial Production, at 16:00 during European trading hours; the U.S. Import Price Index at 21:30 during U.S. trading hours; the University of Michigan Consumer Sentiment Index at 23:00; and remarks by Barkin, President of the Richmond Federal Reserve Bank. We will carefully monitor whether the pound, which fell yesterday, will fluctuate in response to today’s economic data releases and show signs of recovery.
Author: Keisuke Sakurai
