Should We Be on Guard Against Price Fluctuations Caused by Statements 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 previous day, the U.S. dollar showed signs of strength against both the euro and the yen, with the EUR/USD pair falling 150 pips from 0.9709 to 0.9552.The EUR/USD pair continues its downtrend along the 10-period moving average (MA) on the 4-hour chart, and on the weekly chart, the RSI has been trading at low levels below 30 for several weeks. Since no divergence has occurred, traders should remain cautious of further downside.
Among European currencies, the pound hit a record low against the U.S. dollar. The GBP/USD pair opened with a downward gap and fell approximately 550 pips from 1.0846 to 1.0304. Although the pair subsequently fluctuated back and forth, the price action clearly highlighted the pound’s weakness and the U.S. dollar’s runaway strength.However, on the daily chart, the price has deviated significantly from the 20-day moving average and has broken through the -3σ level of the Bollinger Bands, so traders should remain cautious of a potential rebound.
Today’s schedule includes Japan’s machine tool orders at 15:00, remarks by U.S. Chicago Fed President Evans at 16:30, the UK’sMPC Member Pill’s remarks, at 20:30 remarks by U.S. Federal Reserve Chair Powell, at 21:30 U.S. durable goods orders, at 22:00 the U.S. S&P/Case-Shiller Home Price Index, at 22:55 remarks by U.S.St. Louis Fed President, at 11:00 PM: U.S. Consumer Confidence Index and U.S. New Home Sales, and at 2:00 AM: U.S. 5-Year Treasury Auction. While remaining vigilant for price fluctuations caused by key figures’ remarks, we aim to assess recent shifts in currency strength and weakness.
Author: Keisuke Sakurai
