Will the U.S. dollar, which has been rising slightly, continue its upward trend, or should we wait and see?
07.12.2022
- Housing Prices in Halifax, UK
- U.S. MBA Mortgage Applications Index
In U.S. currency trading the previous day, the Dollar Index rose slightly to 105.5, while the GBP/USD pair fell by about 140 pips from 1.2226 to 1.2127.During today’s Asian session, the pair is trading around 1.2139, seeking direction while finding support at the 200-period SMA on the hourly chart. However, on the daily chart, the uptrend continues, supported by the 10-period MA, and since the price has broken above the 200-period SMA with a real body candle, we will be watching to see if the rally continues.
European currencies fell against the U.S. dollar despite yesterday’s release of German October manufacturing new orders, which came in at 0.8% month-over-month—exceeding market expectations of 0.2%.The EUR/USD pair fell by approximately 70 pips from 1.0531 to 1.0458. On the daily chart, the pair has been in a pullback phase since breaking above the 200-day SMA. However, on the weekly chart, the RSI has not yet reached 70 and the reversal trend is continuing, so we will be watching closely to see if an uptrend follows this pullback.
Today, the Swiss unemployment rate will be released at 15:45 during Asian trading hours; the UK Halifax house prices and German industrial production will be released at 16:00 during European trading hours; and at 16:45, the Frenchtrade balance and current account balance, at 19:00 during the European session, the Eurozone’s third-quarter GDP (final reading),at 21:00, the U.S. MBA Mortgage Applications Index; at 22:30 U.S. time, U.S. third-quarter nonfarm labor productivity; at 24:00, the Bank of Canada’s policy rate and statement; at 24:30, U.S. weekly crude oil inventories; andand at 29:00, U.S. consumer credit balances. I’d like to watch the situation carefully to see if the U.S. dollar, which has been rising slightly, will continue its upward trend.
Author: Keisuke Sakurai
