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 U.S. currency trading the previous day, the U.S. dollar plummeted following the release of the August Composite PMI (Purchasing Managers’ Index), which fell to 45. The GBP/USD pair rose by about 150 pips from this year’s low of 1.1717 to 1.1876.It paused near the 75-period moving average (MA) on the hourly chart and has been trading in a consolidation range during today’s Asian session. On the 4-hour chart, the pair has pulled back after encountering resistance at the 20-period MA, so traders should remain cautious regarding price movements heading into the European session.
Among European currencies, the euro continued to fall against the pound. The euro/pound pair dropped by just under 40 pips from 0.8452 to 0.8417, marking its third consecutive day of decline.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 15:00 (Asia time), South Africa’s Consumer Price Index at 17:00 (Europe time), the U.S. MBA Mortgage Applications Index at 20:00 (Europe time), U.S. durable goods orders at 21:30 (U.S. time), pending home sales at 23:00 (U.S. time),at 11:30 p.m. U.S. weekly crude oil inventories, at 2:00 a.m. a U.S. 5-year Treasury auction, and at 7:45 a.m. the following day New Zealand’s second-quarter retail sales figures are scheduled to be released. Ahead of the Jackson Hole Symposium starting tomorrow, we’ll be closely watching to see if the U.S. dollar, which has fallen sharply, will regain its strength.
Author: Keisuke Sakurai
