U.S. – Brade: Attention on Remarks by St. Louis Fed President

U.S. – Brade: Attention on Remarks by St. Louis Fed President

29.09.2022

In the U.S. currency market yesterday, the dollar weakened as the Dollar Index fell by more than 1% to 113.2. The AUD/USD pair rebounded by approximately 160 pips from this year’s low of 0.6362 to 0.6529. This significant rise was driven in part by a rebound in crude oil prices. Since the AUD/USD pair has broken decisively above the 20-period moving average on the 4-hour chart, we will be closely monitoring the situation to see if the upward trend continues.

European currencies rallied as the pound rebounded following the announcement of unlimited emergency long-term bond purchases. The GBP/USD pair rebounded by approximately 370 pips, rising from 1.0536 to 1.0913. It was also announced that the start of government bond sales, originally scheduled for early October, would be postponed until late October. The GBP/USD pair rebounded by breaking above the 75-period moving average on the hourly chart.It is currently trading around 1.0782, and we will be watching to see if it extends its gains into U.S. trading hours.

Today’s schedule includes: Turkey’s Economic Confidence Index at 4:00 PM, remarks by Ramsden, Deputy Governor of the Bank of England, at 8:30 PM, remarks by Mecler, SNB Board Member, at 8:45 PM, Germany’s Consumer Price Index at 9:00 PM, Canada’s GDP, U.S. Initial Jobless Claims, U.S. Personal Consumption Expenditures, and U.S. Q2 GDP at 9:30 PM,U.S. Core PCE Deflator, at 10:00 PM: RBNZ Governor Orr’s remarks, at 10:30 PM: U.S. St. Louis Fed President Bullard’s remarks, at 11:30 PM: U.S. weekly natural gas inventories, and at 2:00 AM: U.S. Cleveland Fed President Mester’s remarks. While keeping a close eye on the pound’s rebound, we will also monitor the relative strength of various currencies.