Will Market Participants Carefully Monitor Currency Strength and Weakness on the Last Day of the Month?
30.11.2022
- U.S. ADP Employment Report
- Chicago Purchasing Managers' Association Business Activity Index
In U.S. currency trading the previous day, although the Dollar Index rose to 106.5, there were no notable price movements, and the GBP/USD pair traded in a range-bound pattern.Although GBP/USD rose from 1.1937 to 1.2063, it gave up all of its gains. Ultimately, it fell back below the 200-period SMA on the hourly chart. A rebound has been observed during today’s Asian session, so it will be worth watching to see if the pair continues to rise into the U.S. session.
Among European currencies, the Swiss franc fell sharply against the yen following yesterday’s release of third-quarter GDP figures, which showed a significant year-over-year decline from the market forecast of 1.1% to 0.5%. The CHF/JPY pair dropped approximately 160 pips, from 146.655 to 145.032.On the 4-hour chart, the pair is trending downward along the 20-period moving average (MA). We need to remain vigilant regarding the direction of the market, as it remains to be seen whether the decline will continue on the final day of the month.
Today’s schedule includes Turkey’s third-quarter GDP at 16:00, France’s Consumer Price Index at 16:45, Switzerland’s KOF Leading Index at 17:00, remarks by MPC member Pill of the UK at 17:30, Germany’sunemployment rate, at 19:00 the Eurozone Consumer Price Index, at 22:15 the U.S. ADP Employment Report, at 22:30 U.S. third-quarter GDP and personal consumption, at 22:50 remarks by Fed Governor Bowman,at 23:45: U.S. Chicago Purchasing Managers’ Index; at 24:00: U.S. JOLTS Job Openings; at 24:30: U.S. Weekly Crude Oil Inventories; at 27:30: Remarks by Fed Chair Powell; and at 28:00: U.S. Beige Book.I plan to carefully monitor currency strength and weakness on this final day of the month.
Author: Keisuke Sakurai
