Should we be on the alert for price fluctuations caused by remarks from key figures?
27.09.2022
- U.S. – Brade: Remarks by the President of the St. Louis Federal Reserve Bank
- Remarks by U.S. Federal Reserve Chair Powell
The U.S. dollar showed strength against both the euro and the yen yesterday, with the EUR/USD pair falling 150 pips from 0.9709 to 0.9552. The EUR/USD pair continues to trend downward along the 10-period moving average on the 4-hour chart, and on the weekly chart, the RSI has been hovering below 30 for several weeks. Since no divergence has occurred, we should remain cautious of further downside movement.
Among European currencies, the pound hit a record low against the U.S. dollar.The GBP/USD pair opened with a gap down, falling approximately 550 pips from 1.0846 to 1.0304. Although the pair subsequently traded in a range, the price action clearly highlighted the pound’s weakness and the US dollar’s unchecked strength. However, on the daily chart, the price has deviated significantly from the 20-day moving average and has broken through the -3σ line of the Bollinger Bands, so caution is warranted regarding a potential rebound.
Today’s schedule includes: Japan’s machine tool orders at 3:00 PM, remarks by Chicago Fed President Evans at 4:30 PM, remarks by MPC member Pill at 8:00 PM, remarks by Fed Chair Powell at 8:30 PM, U.S. durable goods orders at 9:30 PM,the U.S. S&P/Case-Shiller Home Price Index at 10:00 PM, remarks by U.S. St. Louis Fed President Bullard at 10:55 PM, the U.S. Consumer Confidence Index and U.S. New Home Sales at 11:00 PM, and a U.S. 5-year Treasury auction at 2:00 AM. While remaining vigilant for price fluctuations caused by key figures’ remarks, we aim to assess recent shifts in currency strength.
Author: Keisuke Sakurai
