Market participants are likely to closely monitor 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 narrow 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 following yesterday’s rally, it reversed at the daily 200-day SMA, making it difficult for prices to rise smoothly. However, as the pair is also forming a pattern of higher lows, we will need to carefully assess whether comments from key figures will provide momentum to the price direction.
In the European currency market, the euro strengthened against the pound, with the EUR/GBP pair rising by approximately 90 pips from 0.8579 to 0.8673. On the daily chart, the EUR/GBP pair has shown 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’s schedule includes Turkey’s trade balance at 16:00 CET, Switzerland’s Q3 GDP at 17:00 CET, UK mortgage approvals and consumer credit balances at 18:30 CET, and remarks by a member of the Bank of England’s Monetary Policy Committee (MPC) at 21:35 CET, as well as Germany’s consumer price index (flash estimate) at 22:00 EST,at 10:30 PM, Canada’s GDP; at 11:00 PM, the U.S. S&P/Case-Shiller Home Price Index and the U.S. Home Price Index; and at 12:00 AM, 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
