All eyes are on whether the U.S. dollar’s runaway strength will accelerate over the weekend
19.08.2022
- Total Retail Sales
- U.S. – Barkin: Remarks by the President of the Richmond Federal Reserve Bank
The U.S. dollar rose sharply yesterday, with USD/JPY climbing approximately 130 pips from 134.643 to 135.908.The USD/JPY pair has continued to rise during today’s Asian session, breaking through the key 136-yen level and climbing as high as 136.372. Since the USD/JPY has formed a double bottom on the daily chart and the right-hand low is rising, it will be worth watching whether it can maintain this upward momentum and break above the recent high of 137.342.
Among European currencies, both the pound and the euro were the weakest performers, with the euro/dollar pair falling 110 pips from 1.0191 to 1.0079. The euro/dollar pair has broken firmly below the lower boundary of its upward channel, and price action suggests it has returned to a downward trend. We need to remain vigilant to see if it will continue toward this year’s low and test further downside.
Today, at 3:00 PM Asia time, UK retail sales and German producer price index will be released; at 5:00 PM Europe time, Philippine industrial production and producer price index will be released; at 6:00 PM, the Eurozone current account balance will be released;at 8:00 PM, Mexican retail sales; at 8:30 PM, Indian foreign exchange reserves; at 9:30 PM during U.S. trading hours, Canadian retail sales; and at 10:00 PM, remarks by Barkin, President of the Richmond Fed. We will be watching closely to see if the U.S. dollar’s runaway strength accelerates heading into the weekend.
Author: Keisuke Sakurai
