Market Participants Are Carefully Monitoring the Direction of European Currencies
29.11.2022
- U.S. S&P/Case-Shiller Home Price Index
- Remarks by Bank of England Governor Bailey
The previous day, the U.S. dollar traded in a range against the euro, with the EUR/USD pair fluctuating between 1.0496 and 1.0330.Although the EUR/USD pair slightly surpassed this month’s high on yesterday’s rally, it rebounded off the 200-day simple moving average (SMA), making it difficult for prices to rise smoothly. However, since the price is also forming a pattern of higher lows, we need to carefully assess whether comments from key figures will provide momentum to the price direction.
Among European currencies, the euro strengthened against the pound, another European currency, with the EUR/GBP pair rising by about 90 pips from 0.8579 to 0.8673.On the daily chart, the EUR/GBP pair is showing solid support at lower levels and has rebounded firmly off the 200-day EMA. Since there is still room for the pair to rise toward this month’s high of 0.8828, we will be watching closely to see if the euro continues to strengthen during European trading hours.
Today, at 16:00 European time, Turkey’s trade balance will be released,at 17:00, Switzerland’s Q3 GDP; at 18:30, the UK’s mortgage approvals and consumer credit balances; at 21:35, remarks by a member of the Bank of Manchester’s Monetary Policy Committee; and during U.S. trading hours, at 22:00, Germany’s Consumer Price Index (flash estimate);at 22:30, Canada’s GDP; at 23:00, the U.S. S&P/Case-Shiller Home Price Index and the U.S. Home Price Index; and at 24:00, remarks by Bank of England Governor Bailey and Swiss National Bank (SNB) Vice Chairman Schlegel.We will carefully assess the direction of European currencies.
Author: Keisuke Sakurai
