Should investors watch the euro's price movements at the start of the month?
01.09.2022
- U.S. Weekly Natural Gas Inventories
- MIS Manufacturing Index
In the previous day’s U.S. currency trading, the dollar strengthened after Cleveland Fed President Mester stated, “We need to raise the policy rate to a level above 4% and maintain it there.” The AUD/USD pair fell by about 60 pips from 0.6903 to 0.6840.The pair continued to decline during today’s Asian session, touching 0.6804. However, as it has reached a level that acts as a support line on the 4-hour chart, traders should watch for a corrective rebound.
Among European currencies, the euro held its ground against the strengthening U.S. dollar, with the EUR/USD pair rising by just over 100 pips from 0.9971 to 1.0079. The euro has also continued to outperform the pound, another European currency, with the EUR/GBP pair posting a strong bullish candle for the fourth consecutive day. While it is currently trading at 0.8649, the 4-hour RSI stands at 77, so traders should be on the lookout for a corrective pullback.
Today’s schedule includes UK Nationwide house prices and German retail sales at 3:00 PM, Swiss retail sales at 3:30 PM, Swiss manufacturing PMI at 4:30 PM, UK manufacturing PMI at 5:30 PM, US Challenger job cuts at 8:30 PM, and Canadian housing permits at 9:30 PM,US Initial Jobless Claims, US Q2 Nonfarm Productivity, at 10:45 PM US Manufacturing PMI, at 11:00 PM US ISM Manufacturing Index, at 11:30 PM US Weekly Natural Gas Inventories, and at 2:30 AM a speech by Bostic, President of the Atlanta Fed. Keep an eye on the euro’s price movements at the start of the month as it continues to rise.
Author: Keisuke Sakurai
