All eyes are on whether currency strength will shift on the final day of the weekend
25.11.2022
- Canada: Fiscal Balance
- Switzerland: Nonfarm Payrolls
Yesterday, the U.S. dollar weakened against the pound, with GBP/USD rising from 1.2049 to 1.2153, hitting a new high for the month. On the daily chart, GBP/USD is approaching the 200-day moving average, and the RSI is nearing 70. However, since no divergence has occurred and the upward trend remains intact, we will be watching closely to see if the upward movement continues after a brief correction.
European currencies saw the euro fall against the pound, even though Germany’s November IFO Business Climate Index, released yesterday, came in at 86.3, exceeding the market forecast of 85.1.The euro also fell against the yen, with the EUR/JPY pair dropping approximately 150 pips from 145.193 to 143.654. Although the EUR/JPY has rebounded during today’s Asian session, caution is warranted regarding a potential decline as the 10-period moving average (MA) lies just above the 4-hour chart.
Today, at 4:00 PM CET, Germany’s Q3 GDP (final reading) and GFK Consumer Confidence Index will be released, followed by Sweden’s Producer Price Index at 4:30 PM, Switzerland’s non-agricultural employment figures at 4:45 PM, and France’sConsumer Price Index at 16:45, Hungary’s Unemployment Rate at 17:00, the Philippines’ Unemployment Rate at 18:00, India’s Foreign Exchange Reserves at 20:30, Mexico’s GDP at 21:00, and Canada’s Fiscal Balance at 25:00 (U.S. time). We will need to assess carefully whether there will be significant shifts in currency strength on this final day of the weekend.
Author: Keisuke Sakurai
