U.S. – Mester: Should We Pay Attention to the Cleveland Fed President’s Remarks?
31.08.2022
- U.S. Weekly Crude Oil Inventories
- Mester (U.S.): Remarks by the President of the Cleveland Federal Reserve Bank
In yesterday’s U.S. currency trading, the Canadian dollar was the weakest currency, and the CAD/JPY pair fell by just under 90 pips from 106.684 to 105.778.Market sentiment was weighed down by yesterday’s release of Canada’s second-quarter current account balance, which fell to 2.69 billion Canadian dollars—roughly half the previous reading. During today’s Asian trading session, the CAD/JPY pair continues to be capped by the 20-period moving average on the hourly chart and is testing lower levels; therefore, traders should be cautious about chasing the downside.
Among European currencies, the pound weakened against the U.S. dollar, with the GBP/USD pair 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 only a slight margin for further decline. We will need to assess carefully whether the pair will continue to test lower levels during European trading hours.
Today’s schedule includes Germany’s Import Price Index at 15:00, France’s Q2 GDP, Producer Price Index, and Consumer Price Index at 15:45, Turkey’s Q2 GDP at 16:00, and Germany’sunemployment rate, at 18:00 the Eurozone Consumer Price Index, at 20:00 South Africa’s trade balance and remarks by U.S. Federal Reserve Bank of Cleveland President Mester, at 21:15 U.S. ADP employment figures, at 21:30 Canada’s GDP,U.S. Chicago PMI at 22:45, and U.S. weekly crude oil inventories at 23:30. We will monitor currency strength and weakness while keeping an eye on remarks by key figures during U.S. trading hours.
Author: Keisuke Sakurai
