Should investors be on the lookout for price fluctuations caused by remarks from key figures in the U.S.?
09.09.2022
- Canada: Employment Statistics
- George (U.S.): Remarks by the President of the Kansas City Federal Reserve Bank
In the U.S. currency market the previous day, although Federal Reserve Chair Powell’s remarks yesterday maintained the usual hawkish tone—stating that the Fed would “act decisively until its mandate to curb inflation is fulfilled”—the U.S. dollar weakened as the yield on the 10-year U.S. Treasury note temporarily fell to 3.20%.The U.S. dollar also weakened against the Canadian dollar, with the USD/CAD pair falling by about 80 pips to a range of 1.3159–1.3076.
Among European currencies, the euro held its ground against the U.S. dollar after the policy rate was raised by 0.75 points to 1.25%. Although it dipped briefly yesterday, it has risen 140 pips from yesterday’s low of 0.9931 to today’s high of 1.0073.With today’s rise during Asian trading hours, the downtrend in the EUR/USD pair appears to have completely reversed, so we should keep a close eye on the direction of price movements starting next week.
Today’s schedule includes French industrial production and the French manufacturing production index at 15:45 during Asian trading hours; remarks by ECB President Lagarde at 18:30 during European trading hours; Canadian employment statistics and the Canadian second-quarter capacity utilization rate at 21:30 during U.S. trading hours; and at 23:00, U.S.wholesale inventories (final reading), remarks by U.S. Chicago Fed President Evans, remarks by U.S. Federal Reserve Governor Waller at 25:00, and remarks by U.S. Kansas City Fed President George.While remaining vigilant for price fluctuations caused by key figures’ remarks in U.S. time, we will focus on the strength and weakness of the euro against the U.S. dollar as the pair begins to reverse course.
