Investors should be on the lookout for volatility fluctuations while markets in Japan, Canada, and the U.S. are closed

Investors should be on the lookout for volatility fluctuations while markets in Japan, Canada, and the U.S. are closed

10.10.2022

Last weekend, the U.S. dollar strengthened on the back of solid economic data. The GBP/USD pair fell by approximately 160 pips from 1.1222 to 1.1053, breaking below the 200-period simple moving average (SMA) on the hourly chart. During today’s Asian trading session, GBP/USD continues to test lower levels, with the 20-period moving average (MA) on the hourly chart acting as resistance and driving the pair lower.On the 4-hour chart, the pair has entered a downtrend after touching the 200-period SMA, so we will monitor the situation closely to see if the decline continues for the time being.

European currencies traded sideways against the yen as Swiss employment data released last Friday, the 7th, came in strong, while cross-yen pairs generally fell. Switzerland’s seasonally adjusted unemployment rate for September stood at 2.1%, remaining at a low level. The CHF/JPY pair is currently trading at 146.329, just below the 20-period moving average on the hourly chart. We will be watching closely to see if the franc finds support during European trading hours.

Today, at 3:00 PM Asia time, Norway’s Consumer Price Index and Producer Price Index will be released; at 4:00 PM Europe time, Hungary’s trade balance and Turkey’s unemployment rate will be released; at 5:30 PM, the Eurozone Investor Sentiment Index will be released; and at 10:00 PM U.S. time, remarks by U.S. Federal Reserve Bank of Chicago President Evans are scheduled, followed by the U.S. Employment Trends Index at 11:00 PM.Chicago Fed President Evans, and at 11:00 PM US time, the US Employment Trends Index. The bond market will be closed today during US trading hours. I will be watching closely to see if there are any clear price movements during US trading hours.