Attention May Turn to Remarks by BOE Deputy Governor Broadbent
20.10.2022
- Remarks by Broadbent, Deputy Governor of the Bank of England
- Germany: Producer Price Index
In the U.S. currency market the previous day, the U.S. dollar emerged as the strongest currency as the Dollar Index, which had been falling, recovered to 113. The EUR/USD pair, which had been rising, fell from 0.9871 to 0.9756.This represented a decline of approximately 100 pips—roughly the same as 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 the pair will resume its downtrend after a period of consolidation.
Among European currencies, the falling pound continued to weaken against the euro. The GBP/AUD pair 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 trading session, the pound has recovered and is rebounding.The GBP/AUD pair is currently trading around 1.7968, and as it appears to be testing higher levels, we will monitor the market’s direction while keeping an eye on remarks from key UK officials during European trading hours.
Today, at 15:00, Germany’s Producer Price Index and Switzerland’s trade balance will be released; at 17:30, remarks by BOE Deputy Governor Broadbent; at 20:00, the TCMB policy rate and statement from Turkey; and at 21:30, Canada’sHousing Price Index, U.S. Initial Jobless Claims, and the U.S. Philadelphia Fed Business Outlook Index; at 23:00, U.S. Existing Home Sales and the U.S. Leading Economic Index; at 23:30, U.S. Weekly Natural Gas Inventories; at 25:00, remarks by U.S. Federal Reserve Governor Harker:President of the Philadelphia Fed, at 25:30, remarks by U.S. Federal Reserve Governor Cook, at 26:30, remarks by U.S. Federal Reserve Governor Jefferson, and at 27:05, remarks by U.S. Federal Reserve Governor Bowman.We will be watching for price movements in the pound following remarks by key UK officials.
Author: Keisuke Sakurai
