Will the market wait and see where the U.S. dollar is headed following remarks by a key official?
01.12.2022
- MIS Manufacturing Index
- Remarks by U.S. Federal Reserve Board Vice Chair
In yesterday’s U.S. currency trading, the dollar became the weakest currency as the Dollar Index fell to 105.5. GBP/USD rose from 1.1900 to 1.2085.It has continued to rise during today’s Asian trading session. GBP/USD is positioned just below the 200-day SMA on the daily chart and, following yesterday’s rise, remains above the weekly 20-day MA. Similar to EUR/USD, GBP/USD saw a significant rise to the monthly 10-day MA and ended November with a strong bullish candle, so it will be worth watching whether the price action at the start of the month continues its upward trend.
Among European currencies, the euro weakened against the firming Oceania currencies, with the EUR/AUD pair falling from 1.5488 to 1.5309. Technically, the EUR/AUD pair has pulled back after being capped by the 200-period SMA on the hourly chart, and as it is forming a lower low, we will be watching closely to see if the decline continues into the European session.
Today’s economic indicators include UK Nationwide House Prices, German Retail Sales, and Turkish Manufacturing PMI at 4:00 PM; Swiss Consumer Price Index at 4:30 PM; Swiss Manufacturing PMI at 5:30 PM; UK Manufacturing PMI at 6:30 PM;Challenger Job Cuts at 9:30 PM, Q3 Labor Productivity in Canada and Initial Jobless Claims in the U.S. at 10:30 PM, remarks by Fed Governor Bowman at 11:30 PM, the ISM Manufacturing PMI at 12:00 AM, and remarks by Fed Vice Chair Barr at 5:00 AM.We will monitor the direction of the US dollar, which is currently weakening due to remarks from key officials.
Author: Keisuke Sakurai
