Investors should 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 Federal Reserve Bank of Kansas City
In the U.S. currency market yesterday, Federal Reserve Chair Powell’s remarks—in which he stated that the Fed would “act with resolve until its mandate to curb inflation is fulfilled”—reflected the usual hawkish tone. However, the U.S. dollar weakened after the yield on the 10-year U.S. Treasury note temporarily dropped to 3.20%.The dollar also fell against the Canadian dollar, with the USD/CAD pair dropping by about 80 pips to the 1.3159–1.3076 range.
Among European currencies, the euro held its ground against the U.S. dollar after the policy rate was raised by 0.75 percentage points to 1.25%. Although it dipped briefly yesterday, it has risen by 140 pips from yesterday’s low of 0.9931 to today’s high of 1.0073. Given that today’s gains during Asian trading hours appear to have completely reversed the downtrend in the euro/dollar pair, 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 (Asia time); remarks by ECB President Lagarde at 18:30 (Europe time); Canadian employment statistics and the Canadian Q2 capacity utilization rate at 21:30 (U.S. time); and U.S. wholesale inventories (final) and remarks by Evans:Chicago Fed President, at 01:00 AM (US time) remarks by US Federal Reserve Governor Waller, and at 02:00 AM (US time) remarks by US Kansas City Fed President George. While remaining vigilant for price fluctuations caused by key figures’ remarks during US trading hours, we will focus on the strength of the euro against the US dollar as the pair begins to reverse its trend.
Author: Keisuke Sakurai
