U.S. – Mester: Should We Pay Attention to the Cleveland Fed President’s Remarks?

U.S. – Mester: Should We Pay Attention to the Cleveland Fed President’s Remarks?

31.08.2022

In yesterday’s U.S. currency trading, the Canadian dollar was the weakest currency, with the CAD/JPY pair falling by just under 90 pips from 106.684 to 105.778.The market reacted negatively to yesterday’s release of Canada’s second-quarter current account balance, which fell to CAD 2.69 billion—roughly half the previous reading. During today’s Asian session, the CAD/JPY pair continues to test lower levels as its upside is capped by the 20-period moving average (MA), so traders should be cautious about chasing the downside.

Among European currencies, the pound weakened against the U.S. dollar, with GBP/USD falling 130 pips from 1.1760 to 1.1622. GBP/USD has once again hit a new low for the year, and the daily RSI is hovering around 30, leaving little room for further decline. We will need to assess carefully whether the pair will continue to test lower levels during European trading hours.

Today: Germany’s Import Price Index at 3:00 PM, France’s Q2 GDP, Producer Price Index, and Consumer Price Index at 3:45 PM, Turkey’s Q2 GDP at 4:00 PM, Germany’s Unemployment Rate at 4:55 PM, the Eurozone’s Consumer Price Index at 6:00 PM, and South Africa’s Trade Balance at 8:00 PM,U.S. remarks by Mester, President of the Cleveland Fed; U.S. ADP Employment Report at 9:15 PM; Canada’s GDP at 9:30 PM; U.S. Chicago PMI at 10:45 PM; and U.S. weekly crude oil inventories at 11:30 PM. We will monitor currency strength while paying close attention to key speeches during U.S. trading hours.

Past Market Reports

1. 22.04.2026New

   Will interest grow in the upside potential of the Swiss franc, which has risen against the yen?

2. 21.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

3. 20.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

4. 17.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

5. 16.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

6. 15.04.2026

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

7. 14.04.2026

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

8. 13.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

9. 10.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

10. 09.04.2026

    Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?