Will the pound, which has rebounded sharply from the flash crash, continue to rise, or should we wait and see?
03.10.2022
- MIS Manufacturing Index
- Williams (U.S.): Remarks by the President of the New York Fed
Last weekend, the U.S. dollar traded in a tight range against European currencies, with the EUR/USD pair moving sideways.The EUR/USD pair traded within a range of 0.9851 to 0.9733, but looking at the 4-hour chart, the 20-period moving average (MA) is acting as a support level at the lower end, and the pair is currently in a phase of continued upward momentum. It is currently positioned just below the 4-hour 75-period MA, and the focus is on whether it can continue rising to 0.9953, which is near the 200-period SMA.
Among European currencies, the pound, which had been gaining momentum against the U.S. dollar, has lost steam. The GBP/USD pair is trading sideways between 1.1230 and 1.1024, with resistance building above. Having nearly fully recovered from the sharp decline in the latter half of last month, the pound is expected to experience volatility this week amid protests against the new Truss administration’s proposed large-scale tax cuts.For now, we will be watching closely to see if the price breaks above the 20-day moving average (MA) at 1.1234 with a solid candle.
Today’s schedule includes the Swiss Consumer Price Index at 15:30 (Asia time) and the French Budget Balance at 15:45; the Turkish Manufacturing PMI and Turkish Consumer Price Index at 16:00 (Europe time); the Swiss Manufacturing PMI at 16:30; the UK Manufacturing PMI at 17:30; and at 22:05 (U.S. time), remarks by Bostic:remarks by Bostic, President of the Atlanta Fed; at 22:45, the U.S. Manufacturing PMI; at 23:00, the U.S. ISM Manufacturing Index; at 03:00, remarks by a member of the Bank of England’s Monetary Policy Committee; and at 04:10, remarks by Williams, President of the New York Fed. We will be watching closely to see if the pound’s momentum, which has rebounded sharply from the flash crash, will continue.
Author: Keisuke Sakurai
