Will market participants cautiously wait and see how currency strength plays out on the last day of the month?
30.11.2022
- U.S. ADP Employment Report
- Chicago Purchasing Managers' Index
In the U.S. session yesterday, the Dollar Index rose to 106.5 but saw little significant movement, while GBP/USD traded in a range-bound pattern. Although GBP/USD rose from 1.1937 to 1.2063, it gave up all of those gains. Ultimately, the pair fell back below the 200-period simple moving average (SMA). With a rebound observed during today’s Asian session, it will be worth watching whether the pair continues to rise into the U.S. session.
In the European currency markets, the Swiss franc fell sharply against the yen following yesterday’s release of third-quarter GDP data, which showed a significant year-over-year decline from the market forecast of 1.1% to 0.5%. The CHF/JPY pair dropped by 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. We need to remain vigilant regarding the direction of the market, as it remains to be seen whether the decline will continue on the last trading day of the month.
Today’s schedule includes Turkey’s Q3 GDP at 4:00 PM, France’s Consumer Price Index at 4:45 PM, Switzerland’s KOF Leading Index at 5:00 PM, remarks by MPC member Pill at 5:30 PM, and Germany’sunemployment rate, at 7:00 PM the Eurozone CPI, at 10:15 PM the US ADP Employment Report, at 10:30 PM US Q3 GDP and US personal consumption,22:50: Remarks by Fed Governor Bowman, 23:45: Chicago PMI, 24:00: JOLTS Job Openings, 24:30: Weekly Crude Oil Inventories, 27:30: Remarks by Fed Chair Powell, and 28:00: Beige Book.I intend to carefully monitor currency strength on this final day of the month.
Author: Keisuke Sakurai
