Will the release of economic indicators in the U.S. clarify which currencies are stronger?
09.11.2022
- Williams (U.S.): Remarks by the President of the New York Fed
- U.S. MBA Mortgage Applications Index
In the previous day’s U.S. currency trading, both short- and long-term U.S. Treasury yields fell, causing the U.S. dollar to weaken against the euro. The EUR/USD pair rose by approximately 120 pips from 0.9972 to 1.0096.This brought the pair in line with the recent high set on October 27. With yesterday’s rise completing a retest of the downtrend line, we will be closely monitoring the EUR/USD’s price action to see if it extends higher, possibly with some consolidation along the way.
In the European currency market, the pound’s recent upward momentum has paused, leaving the EUR/GBP pair in a stalemate. The pair is currently trading around 0.8723, with the daily RSI showing a slight upward trend from the 50 midline. On the weekly chart, the EUR/GBP pair has been rising with support from the 75-day moving average, so it will be worth watching whether the euro gains strength as time goes on.
Today’s schedule includes remarks by U.S. Federal Reserve Bank of New York President Williams at 17:00 CET, remarks by RBA Deputy Governor Block at 18:05 CET, and the U.S. MBA Mortgage Applications Index at 21:00 CET, as well as remarks by UK MPC Member Haskell at 22:00 ET, U.S. Wholesale Inventories (final) at 24:00 ET,at 12:30 a.m. (US time), US weekly crude oil inventories; at 1:00 a.m. (US time), remarks by US Richmond Fed President Barkin; at 1:30 a.m. (US time), remarks by UK BOE Deputy Governor Canrif; and at 3:00 a.m. (US time), a US 10-year Treasury auction. We will monitor these US-time economic releases to see if they clarify currency strength and weakness, while remaining vigilant regarding the results of the US midterm elections.
Author: Keisuke Sakurai
