Should we be wary of the falling U.S. dollar continuing its downward trend?
25.08.2022
- U.S. Initial Jobless Claims
- Kansas City Fed 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.The U.S. existing home sales index for July, released yesterday, improved to -1.0% from the previous reading of -8.6%, but July durable goods orders fell from 2.0% to 0.0%, which weighed on the U.S. dollar.
European currencies are facing resistance, with the GBP/AUD pair falling slightly from 1.7118 to 1.7047. During today’s Asian trading session, the decline accelerated, with the pair dropping to 1.6994—a level that matches 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’s schedule includes Germany’s Q2 GDP at 3:00 PM, Turkey’s Economic Sentiment Index and Capacity Utilization Rate at 4:00 PM, Germany’s IFO Business Climate Index at 5:00 PM, and the UK’sCBI Retail Trade Survey, at 20:30 the ECB Meeting Minutes, at 21:30 U.S. Initial Jobless Claims, U.S. Q2 GDP, and U.S. Core PCE Deflator, at 24:00 the Kansas City Fed Manufacturing Activity Index, and at 26:00 a U.S. 7-year Treasury auction.We will carefully assess whether the US dollar, which is currently trending lower, will continue its downward movement.
Author: Keisuke Sakurai
