Market participants are likely to keep a close eye on the upside potential for European currencies following weaker-than-expected economic indicators
25.10.2022
- Remarks by MPC Member Pill (UK)
- U.S. S&P/Case-Shiller Home Price Index
In the U.S. currency market yesterday, the dollar faced resistance as the Dollar Index fell from 112 to 111. Despite this resistance, the dollar held its ground against the pound, with GBP/USD trading around 1.1270; it has since risen to 1.1312 during Asian trading hours.Although reports emerged yesterday that a new British Prime Minister had been elected and that former Chancellor Rishi Sunak would take office, this did not lead to a rise in the pound, and price movements remained limited.
Despite the fact that Germany’s October Manufacturing PMI (Purchasing Managers’ Index), released yesterday, came in at 45.7—below the market forecast of 47.2—the euro rose against the yen.The EUR/JPY pair rose from 145.955 to 147.198, showing a gradual upward trend along the 10-period moving average (MA) on the hourly chart. On the 4-hour chart, the pair has not experienced any sharp fluctuations, and since the 4-hour RSI has reversed near the 60 level, it will be worth watching to see if an upward move occurs during U.S. trading hours.
Today, at 3:00 PM Asia time, Japan’s machine tool orders will be released; at 4:00 PM Europe time, Turkey’s Economic Sentiment Index and Capacity Utilization Rate will be released; at 5:00 PM, Germany’s IFO Business Climate Index will be released; at 5:55 PM, UK MPC member Pill will speak; and at 7:00 PM, the UK’sCBI Business Survey, at 22:00 US time: US S&P/Case-Shiller Home Price Index, at 23:00: US Consumer Confidence Index and US Richmond Fed Manufacturing Index, at 02:00: US 2-year Treasury auction, and at 02:55: remarks by US Federal Reserve Governor Waller. We will be closely monitoring the upside potential for European currencies following the weaker-than-expected economic data.
Author: Keisuke Sakurai
