Should we keep a close eye on the direction of the GBP/USD pair, which continues to hit new lows this year?
02.09.2022
- U.S. Employment Report
- Eurozone Producer Price Index
U.S. currencies rose yesterday after the August ISM Manufacturing Index, released yesterday, came in at 52.8—matching the previous reading and defying market expectations.GBP/USD fell by approximately 120 pips from 1.1620 to 1.1498. GBP/USD continues to hit new lows for the year and is now just a hair’s breadth away from the March 2020 low of 1.1433, so traders should also watch for price movements ahead of news regarding the UK’s new party leader, which is set to be announced early next week.
Among European currencies, the pound held its ground against the lackluster Oceania currencies, with GBP/AUD trading in a range between 1.6910 and 1.7032.With crude oil prices falling for the third consecutive day and Oceania currencies trading weakly, the slightly weaker pound managed to gain a slight edge. While GBP/AUD is forming a range-bound market on the 4-hour chart, it has been raising its lows, so we will be watching for upward momentum heading into European trading hours.
Today, during Asian trading hours, Germany’s trade balance will be released at 15:00, followed by Switzerland’s second-quarter non-agricultural employment figures at 15:30, France’sfiscal balance, followed by Norway’s unemployment rate at 17:00 European time, the Eurozone’s Producer Price Index at 18:00, Brazil’s industrial production at 21:00, Canada’s Q2 labor productivity index and U.S. employment data at 21:30 U.S. time, and U.S. manufacturing orders at 23:00. We will be closely monitoring the direction of the GBP/USD pair, which continues to hit new lows this year.
Author: Keisuke Sakurai
