Should We Be Wary of the U.S. Dollar Continuing Its Downward Trend?
25.08.2022
- U.S. Initial Unemployment Insurance Claims
- Kansas City Federal Reserve Bank Manufacturing Activity Index
In the U.S. currency market the previous day, the Dollar Index fell slightly to 108.2, while the euro rose by just over 80 pips against the dollar, from 0.9909 to 0.9999.Although the U.S. July existing home sales index, released yesterday, improved to -1.0% from the previous reading of -8.6%, July durable goods orders fell from 2.0% to 0.0%, which weighed on the U.S. dollar.
Among European currencies, the pound is facing resistance, and the GBP/AUD pair fell slightly from 1.7118 to 1.7047.During today’s Asian trading session, the decline accelerated, with the pair falling to 1.6994—a level matching this year’s low. Since the pair is currently trending downward along the 20-day moving average on the daily chart, we will be closely monitoring whether it continues to slide and breaks below this year’s low.
Today, Germany’s second-quarter GDP will be released at 3:00 p.m., followed by Turkey’s Economic Sentiment Index and Capacity Utilization Rate at 4:00 p.m., Germany’s IFO Business Climate Index at 5:00 p.m., and the U.K.’sCBI Retail Trade Survey, at 20:30 the ECB will release the minutes of its Governing Council meeting, at 21:30 the U.S. will report initial jobless claims and second-quarter GDP,U.S. Core PCE Deflator, at 24:00 the U.S. Kansas City Fed Manufacturing Activity Index, and at 26:00 a U.S. 7-year Treasury note auction. We will carefully assess whether the U.S. dollar, which has been trending lower, will continue its downward movement.
Author: Keisuke Sakurai
