Investors should watch for price fluctuations following remarks by BOE Deputy Governor Canrif

Investors should watch for price fluctuations following remarks by BOE Deputy Governor Canrif

28.09.2022

U.S. currencies rose during U.S. trading hours yesterday after the September consumer confidence index came in above market expectations. The EUR/USD pair fell by about 100 pips from 0.9668 to 0.9569. During today’s Asian session, it hit a new low, touching 0.9544. However, since the 4-hour RSI for the EUR/USD is showing signs of divergence, we should remain cautious of a potential rebound.

In the European currency markets, the pound—which experienced a flash crash at the start of the week—has been trading in a tight range against the U.S. dollar. Although GBP/USD rebounded by just under 200 pips from 1.0647 to 1.0836, it ultimately gave up all those gains and is showing further declines during today’s Asian trading session. Since the hourly RSI for GBP/USD rose to around 50 during the flash crash, traders should remain cautious of further downside.

Today’s schedule includes the German GfK Consumer Confidence Survey at 3:00 PM, the French Consumer Confidence Index at 3:45 PM, remarks by ECB President Lagarde at 4:15 PM, remarks by BOE Deputy Governor Kanliff at 5:15 PM, the U.S. MBA Mortgage Applications Index at 8:00 PM, U.S. Wholesale Inventories at 9:30 PM,21:35: U.S. remarks by Bostic, President of the Atlanta Fed; 23:00: U.S. pending home sales; 23:10: U.S. remarks by Braad,St. Louis Fed President remarks, 11:15 PM US Fed Chair Powell remarks, 11:30 PM US weekly crude oil inventories, 12:30 AM US Richmond Fed President Barkin remarks, and 2:00 AM US 7-year Treasury auction. We should pay close attention to whether the pound reacts to remarks by UK BOE Deputy Governor Canrif.