Will the Pound, Which Has Rebounded Rapidly from the Flash Crash, Continue to Rise, or Should We Wait and See?
03.10.2022
- U.S. ISM Manufacturing PMI
- U.S. – Williams: 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 within a narrow range. While the EUR/USD fluctuated between 0.9851 and 0.9733, the 4-hour chart shows that 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 recovery.The pair is currently positioned just below the 4-hour 75-MA, and the focus is on whether it can continue rising to 0.9953, which is near the 200-SMA.
Among European currencies, the pound—which had been gaining momentum against the U.S. dollar—lost steam. The GBP/USD pair has been trading sideways between 1.1230 and 1.1024, with resistance building on the upside.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 ongoing 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 candlestick.
Today’s schedule includes the Swiss Consumer Price Index at 15:30 during Asian trading hours, the French budget balance at 15:45, the Turkish Manufacturing PMI at 16:00 during European trading hours,Turkey’s Consumer Price Index, at 16:30 the Swiss Manufacturing PMI, at 17:30 the UK Manufacturing PMI, and during U.S. trading hours at 22:05 remarks by U.S. Federal Reserve Bank of Atlanta President Bostic:remarks by the President of the Atlanta Fed, at 22:45 the U.S. Manufacturing PMI, at 23:00 the U.S. ISM Manufacturing Index, at 27:00 remarks by a member of the Bank of England’s MPC, and at 28:10 remarks by U.S. Federal Reserve Bank of New York President Williams.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
