Market participants may be on alert for price fluctuations caused by statements from government officials in various countries

Market participants may be on the lookout for price fluctuations caused by statements from government officials in various countries

19.10.2022

In the previous day's U.S. currency trading, the dollar index fell to 111, weighing on the U.S. dollar.The EUR/USD pair rose gradually by about 60 pips from 0.9814 to 0.9874. The price action attempted to rise just below the 4-hour 200 SMA. As of now during Asian trading hours, the price is not facing resistance at the 4-hour 200 SMA but has instead formed a higher low. Therefore, we will be watching closely to see if a breakout occurs heading into European trading hours.

Among European currencies, the pound—which had staged a strong rebound the day before yesterday—became the weakest performer. GBP/JPY fell by approximately 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 since rebounded along that level during today’s Asian trading session. Since the daily RSI for GBP/JPY is hovering just below 70 and no divergence has been observed, we will be watching for further gains.

Today’s schedule includes the UK Consumer Price Index, UK Retail Sales, and UK Producer Price Index at 15:00 Asia time; the Eurozone Consumer Price Index at 18:00 Europe time; the Canadian Consumer Price Index and US Housing Starts at 21:30 US time; remarks by Bank of England Deputy Governor Kanliff at 22:00; US weekly crude oil inventories at 23:30;at 12:00 AM, remarks by a member of the UK’s MPC; at 2:00 AM, remarks by Neel Kashkari, President of the Federal Reserve Bank of Minneapolis; and at 3:00 AM, the US Regional Fed Economic Report. While remaining vigilant for price fluctuations caused by remarks from key figures in various countries, I intend to closely monitor currency strength and weakness.