All eyes are on whether the weakening U.S. dollar will rebound following remarks by key officials
17.11.2022
- Remarks by Bowman, Member of the Federal Reserve Board
- Philadelphia Fed Business Outlook Index
U.S. currencies held their ground against weaker European currencies yesterday, with the AUD/USD pair falling from 0.6791 to 0.6722.The AUD/USD pair had posted four consecutive bullish candles, but has recently pulled back as it approaches the daily 200-day EMA. With Oceania currencies continuing to weaken, we will be watching closely to see if the US dollar rebounds against the Australian dollar, starting with whether the price breaks below the 4-hour 20-day MA at 0.6738 with a real body candle.
Among European currencies, the euro emerged as the strongest, with the EUR/USD pair rising from 1.0331 to 1.0437. However, it retreated to 1.0355 after the rally and is currently trading just below the 20-period moving average (MA) at 1.0390 during today’s Asian session.On the 4-hour chart, the EUR/USD is forming lower highs, and on the daily chart, the RSI has reached 70 just below the 200-day SMA. We should remain cautious as this suggests the roughly two-week-long rally may be pausing for now.
Today’s schedule includes: Switzerland’s trade balance at 4:00 PM, the Eurozone’s consumer price index at 7:00 PM, remarks by MPC member Pill at 9:30 PM, remarks by St. Louis Fed President Bullard at 10:00 PM, U.S. initial jobless claims, housing starts, and building permits at 10:30 PM,U.S. Philadelphia Fed Business Outlook Survey, at 11:15 PM: Remarks by U.S. Federal Reserve Governor Bowman, at 11:30 PM: Remarks by UK MPC Member Tenreyro, at 11:40 PM: Remarks by U.S. Federal Reserve Governor Mester:Cleveland Fed President’s remarks, U.S. weekly natural gas inventories at 00:30, U.S. Fed Governor Jefferson’s remarks at 00:40, U.S. Minneapolis Fed President Kashkari’s remarks, and U.S. Kansas City Fed President’s remarks at 01:00. We will closely monitor the market direction to see if the faltering U.S. dollar can rebound on the back of these key speeches.
Author: Keisuke Sakurai
