Will the U.S. dollar rise or fall following hawkish comments from the St. Louis Fed president?
18.11.2022
- Remarks by Nagel, President of the German Federal 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 comments from 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-period 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, causing the CHF/JPY pair to decline against the yen. The pair fell from 147.717 to 146.990, marking a gradual decline along 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 clear direction. Therefore, we plan to remain on the sidelines until price movements become clearer next week.
Today’s schedule includes UK retail sales at 16:00 CET, remarks by ECB President Lagarde at 17:30 CET, remarks by Bundesbank President Nagel at 22:00 EST, and remarks by a member of the Bank of England’s Monetary Policy Committee at 22:15 EST, followed by the Canadian Housing Price Index, Canadian Industrial Product Prices, and the Canadian Raw Materials Price Index at 22:30 EST.MPC member Mann, at 22:30 the Canadian Housing Price Index, Industrial Product Prices, and Raw Materials Price Index, at 22:40 remarks by U.S. Federal Reserve Bank of Boston President Collins, 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 closely monitor the market direction to see if the US dollar gains ground following the hawkish remarks from the St. Louis Fed President.
Author: Keisuke Sakurai
