Should we keep an eye on the direction of the slumping pound?
10.11.2022
- U.S. Consumer Price Index (CPI)
- Harker (U.S.): Remarks by the President of the Federal Reserve Bank of Philadelphia
In the previous day's trading, the U.S. dollar rebounded during European trading hours and rose against the yen.The USD/JPY pair rose from 145.167 to 146.775, managing to avoid falling below the 145 yen level. However, the pair remains below the 20-day moving average (MA) on the daily chart, and the 200-day simple moving average (SMA) is acting as resistance on the 4-hour chart. Therefore, we need to remain vigilant regarding whether today’s U.S. Consumer Price Index (CPI) release will trigger further downside pressure.
Among European currencies, the pound was the weakest, with GBP/JPY falling by just over 2 yen from 168.302 to 166.018. Yesterday’s decline halted GBP/JPY’s advance toward the upper boundary of the uptrend line, triggering a pullback to the 200-period EMA on the 4-hour chart. During today’s Asian session, the pair has rebounded back toward the lower boundary of the uptrend line, so we will wait and see if it continues to rise into the European session.
Today’s schedule includes Turkey’s unemployment rate at 16:00 CET, remarks by Fed Governor Waller at 16:00 CET, the ECB’s monthly report at 18:00 CET, remarks by SNB Board Member Meckl at 21:30 CET, and during U.S. trading hours at 22:00, remarks byRamsden, Deputy Governor of the Bank of England, at 10:30 PM US time, US initial jobless claims and the US Consumer Price Index at 10:30 PM, remarks by Harker, President of the Federal Reserve Bank of Philadelphia, at 10:30 PM, remarks by Logan, President of the Federal Reserve Bank of Dallas, at 11:35 PM, US weekly natural gas inventories at 12:30 AM, and a US 30-year Treasury auction at 3:00 AM.I intend to carefully monitor the direction of the sterling, which is losing momentum.
Author: Keisuke Sakurai
