All eyes are on whether the plummeting U.S. dollar will regain its strength
24.08.2022
- U.S. Existing Home Sales Pending
- U.S. MBA Mortgage Applications Index
In the U.S. currency market yesterday, the dollar plummeted following the release of the August Composite PMI (Purchasing Managers' Index), which fell to 45. The GBP/USD pair rose by approximately 150 pips from this year's low of 1.1717 to 1.1876. It stalled near the 75-period moving average on the hourly chart and has been trading in a consolidation range during today's Asian session.On the 4-hour chart, the pair is rebounding from the 20-day moving average (MA) acting as resistance, so caution is advised regarding price movements heading into European trading hours.
Among European currencies, the euro continued to decline against the pound. The EUR/GBP pair fell by just under 40 pips from 0.8452 to 0.8417, marking its third consecutive day of losses. As the pair continues to test lower levels during today’s Asian trading session, we need to carefully assess whether it will extend its decline to the recent low of 0.8387 and break below it with a solid candlestick.
Today’s schedule includes Japanese machine tool orders at 3:00 PM (Asia time), South African CPI at 5:00 PM (Europe time), the U.S. MBA Mortgage Applications Index at 8:00 PM (Europe time), U.S. durable goods orders at 9:30 PM (U.S. time), and pending home sales at 11:00 PM (U.S. time).at 11:30 PM, US weekly crude oil inventories; at 2:00 AM, the US 5-year Treasury auction; and at 7:45 AM the following day, New Zealand’s Q2 retail sales. Ahead of the Jackson Hole Symposium starting tomorrow, we will be closely monitoring whether the US dollar, which has recently plummeted, will regain its strength.
Author: Keisuke Sakurai
