Will the U.S. Dollar Rise or Will Market Participants Remain Cautious Following the St. Louis Fed President’s Hawkish Remarks?
18.11.2022
- Remarks by Nagel, President of the German Central Bank
- Collins (U.S.): Remarks by the President of the Boston Federal Reserve Bank
U.S. currencies strengthened toward the end of the previous day’s trading following hawkish remarks by St. Louis Fed President Bullard. The GBP/USD pair fell from 1.1951 to 1.1762, breaking below the 75-period moving average on the hourly chart and hitting a new recent low.On the 4-hour chart, the RSI has turned downward after exceeding 70, and on the daily chart, the deviation from the 20-day moving average is widening. We should remain cautious regarding price movements during U.S. trading hours on the final day of the week.
Among European currencies, the Swiss franc was the weakest toward the close, and the CHF/JPY pair fell against the yen. The CHF/JPY pair fell from 147.717 to 146.990.The decline was gradual, following the 20-period moving average (MA) on the hourly chart. However, on the daily chart, the market is in a range-bound pattern centered around the 20-period MA, lacking a clear direction; therefore, it would be prudent to remain on the sidelines until price action becomes clearer next week.
Today’s highlights include UK retail sales at 16:00 European time, remarks by ECB President Lagarde at 17:30, and—during U.S. trading hours—at 22:00, remarks by Germanremarks by German Bundesbank President Nagel, at 22:15 UK time—remarks by MPC member Mann, at 22:30—Canada’s Housing Price Index, Industrial Product Prices, and Raw Materials Price Index, at 22:40—remarks by Collins,Boston Fed President Collins’ remarks; at 24:00, U.S. existing home sales and the U.S. leading economic index; and at 26:15, remarks by UK MPC member Haskell. We will carefully monitor the market direction to see if the U.S. dollar strengthens following hawkish remarks from the St. Louis Fed President.
Author: Keisuke Sakurai
