Attention is likely to focus on remarks by BOE Deputy Governor Broadbent

Attention is likely to focus on remarks by BOE Deputy Governor Broadbent

20.10.2022

In the U.S. currency market yesterday, the dollar became the strongest currency as the Dollar Index, which had been falling, recovered to 113. The euro/dollar pair, which had been rising, fell from 0.9871 to 0.9756.This represented a decline of approximately 100 pips, roughly equivalent to the previous day’s gain. However, since the daily chart continues to show higher lows, the pair appears to be forming a pennant within an ongoing downtrend. We will monitor the situation carefully to see if it re-enters the downtrend after a period of consolidation.

European currencies saw the pound, which has been falling, weaken further against the euro.GBP/AUD fell slightly from 1.7975 to 1.7851, briefly dipping below the 20-period moving average on the 4-hour chart. However, during today’s Asian session, the pound has recovered and rebounded. GBP/AUD is currently trading around 1.7968, and as it appears poised to test higher levels, we will monitor the market’s direction while keeping an eye on remarks from key UK officials during the European session.

Today, at 3:00 PM, Germany’s Producer Price Index and Switzerland’s trade balance will be released,at 5:30 PM, remarks by Bank of England Deputy Governor Broadbent; at 8:00 PM, the Turkish Central Bank’s policy rate and statement; at 9:30 PM, the Canadian House Price Index, U.S. Initial Jobless Claims, and the U.S. Philadelphia Fed Business Outlook Index; at 11:00 PM, U.S. Existing Home Sales and the U.S. Leading Economic Index;23:30 US Weekly Natural Gas Inventories, 25:00 US Remarks by Harker, President of the Philadelphia Fed, 25:30 US Remarks by Cook, Fed Governor, 26:30 US Remarks by Jefferson, Fed Governor, 27:05 US Remarks by Bowman, Fed Governor.We should keep an eye on price movements in the pound following remarks by UK officials.