All eyes are on the direction of the pound following the election of the new prime minister, which sparked a rally
07.09.2022
- U.S. MBA Mortgage Applications Index
- Remarks by U.S. Federal Reserve Vice Chair Brainard
In the previous day’s U.S. currency trading, the Dollar Index surged to 110.5, making the U.S. dollar the strongest currency. The AUD/USD pair fell from 0.6830 to 0.6728.It continues to test lower levels during today’s Asian trading session. In addition to WTI crude oil falling to $85.60, the daily RSI for AUD/USD has not yet reached 30, indicating there is still room to fall, so we should be cautious of further downside potential.
European currencies saw the pound rally on the back of the election of the UK’s new Prime Minister, Liz Truss, the day before yesterday. Combined with a weaker yen, the GBP/JPY pair rose by 3.3 yen in a single day.During today’s Asian session, the pair hit a new high, touching 165.251. GBP/JPY temporarily fell by about 100 pips but subsequently recovered. It is currently trading at 164.682. However, as a triple top pattern is forming on the hourly chart, we should be wary of a short-term decline.
Today’s schedule includes German industrial production and UK Halifax house prices at 3:00 PM, Eurozone Q2 GDP and remarks by Bank of England Governor Bailey at 6:00 PM, the U.S. MBA Mortgage Applications Index at 8:00 PM, U.S. and Canadian trade balances at 9:30 PM, and remarks by U.S. Federal Reserve Bank of Richmond President Barkin at 10:00 PM:Richmond Fed President remarks, at 11:00 PM: Canada’s BOC policy rate and statement, Canada’s Ivey Purchasing Managers’ Index, and U.S. Cleveland Fed President Mester’s remarks; at 1:40 AM: U.S. Fed Vice Chair Brainard’s remarks; and at 3:00 AM: the U.S. Beige Book and U.S. Fed Vice Chair Barr’s remarks.We will be watching the direction of the pound, which has seen a rally following the election of the new prime minister.
Author: Keisuke Sakurai
