Markets May Keep a Close Eye on Price Movements at the Start of the Week Amid U.S. Employment Data

Markets May Keep a Close Eye on Price Movements at the Start of the Week Amid U.S. Employment Data

29.08.2022

Last weekend, the U.S. dollar strengthened following hawkish remarks by Fed Chair Powell, causing the GBP/USD pair to fall by approximately 160 pips from 1.1899 to 1.1733.GBP/USD has continued to decline during today’s Asian trading session, currently trading at 1.1650 and hitting a new low for the year. The extent of the decline has been significant, partly due to the pound’s weakness. As GBP/USD has entered a support-free zone, traders should be wary of further downside movement toward 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 pulled back 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 SMA on the 4-hour chart and continues to rise.

Today, Turkey’s trade balance and economic confidence figures are scheduled for 16:00, the Dallas Fed Manufacturing Index for the U.S. at 23:30, a U.S. 3-month Treasury bill auction at 24:30, and remarks by Fed Vice Chair Brainard at 27:15.With the U.S. ADP Employment Report on Wednesday, the 31st, the U.S. ISM Manufacturing Index on Thursday, the 1st, and the U.S. Nonfarm Payrolls Report 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.