Caution Over Price Fluctuations Caused by Statements from Key Figures in Various Countries?
19.10.2022
- Kashkari (U.S.): Remarks by the President of the Minneapolis Fed
- Remarks by BOE Deputy Governor Kanrif of the UK
In U.S. currency trading the previous day, the dollar faced resistance as the Dollar Index fell to 111. The EUR/USD pair rose gradually by about 60 pips from 0.9814 to 0.9874, testing the level just below the 200 SMA on the 4-hour chart.As of now during Asian trading hours, the price is not facing resistance at the 4-hour 200 SMA but appears to be forming higher lows; therefore, we will be watching closely to see if a breakout above this level occurs heading into European trading hours.
Among European currencies, the pound—which had staged a strong rebound the day before yesterday—became the weakest currency. The GBP/JPY pair fell by about 2.5 yen, from 170.043 to 167.613. Although it briefly dipped below the 20-period moving average (MA) on the hourly chart, it has been rebounding along that 20-period MA during today’s Asian trading session.Since no divergence can be confirmed on the GBP/JPY daily RSI, which is hovering just below 70, we will be watching for further gains.
Today, at 15:00 Asia time, the UK Consumer Price Index, UK Retail Sales, and UK Producer Price Index will be released; at 18:00 Europe time, the Eurozone Consumer Price Index will be released; at 21:30 U.S. time, the Canadian Consumer Price Index and U.S. Housing Starts will be released; and at 22:00, the UK’sremarks by BOE Deputy Governor Kanrif, at 23:30 U.S. weekly crude oil inventories, at 24:00 remarks by a member of the Bank of England’s Monetary Policy Committee (MPC), at 26:00 remarks by U.S. Federal Reserve Bank of Minneapolis President Kashkari, and at 27:00 the U.S. Federal Reserve District Economic Reports.While remaining vigilant for price fluctuations caused by remarks from key officials in various countries, I intend to closely monitor currency strength and weakness.
Author: Keisuke Sakurai
