Markets to Watch for Early Moves in the Week of the U.S. Jobs Report
29.08.2022
- Remarks by U.S. Federal Reserve Vice Chair Brainard
- Dallas Fed Manufacturing Index
Last weekend, the U.S. dollar strengthened following hawkish comments from Fed Chair Powell, causing GBP/USD to fall by approximately 160 pips from 1.1899 to 1.1733.GBP/USD has continued to decline during today’s Asian session, currently trading at 1.1650 and hitting a new low for the year. The pound’s weakness is contributing to the sharp decline. As GBP/USD has entered a support-free zone, we should remain cautious of further downside until the next support level at 1.1433.
European currencies rose as France’s August consumer confidence index, released last weekend, improved from 80 to 82, causing the euro/yen pair to climb by just under 2 yen from 136.014 to 137.967.Although the pair temporarily retreated following remarks by Fed Chair Powell, it has recovered during today’s Asian trading session and is currently trading around 137.283. We will be closely monitoring whether it breaks above the 200-period SMA on the 4-hour chart and continues to rise.
Today, Turkey’s trade balance and economic confidence figures are scheduled for 4:00 PM, the Dallas Fed Manufacturing Index for the U.S. at 11:30 PM, a U.S. 3-month Treasury bill auction at 12:30 AM, and remarks by Fed Vice Chair Brainard at 3:15 AM.With the U.S. ADP Employment Report on Wednesday, the 31st, the U.S. ISM Manufacturing PMI on Thursday, the 1st, and the U.S. Nonfarm Payrolls on Friday, the 2nd, coming up this week, attention on the U.S. dollar is likely to intensify. We should carefully assess the U.S. dollar’s price movements heading into the weekend.
Author: Keisuke Sakurai
