Should we be on the lookout for fluctuations in the pound following the release of UK economic indicators?
12.12.2022
- U.S. 10-Year Treasury Auction
- UK GDP
Last weekend, the U.S. dollar held steady on the downside following the release of the U.S. November PPI, with the EUR/USD pair falling by about 80 pips from 1.0587 to 1.0503.The U.S. November Producer Price Index (PPI), released on the 9th, came in at 7.4% year-over-year—higher than the market forecast of 7.1% and down from the previous reading of 8.0%. This led to speculation that the U.S. Consumer Price Index (CPI), scheduled for release tomorrow, may be less likely to decline, causing the U.S. dollar to surge.
Among European currencies, the pound strengthened against the yen ahead of today’s GDP release. GBP/JPY rose by approximately 1.7 yen, from 166.258 to 168.056, hitting a new high for the month. Since GBP/JPY continues to trade with support from the 20-day moving average (MA) on the weekly chart, we intend to maintain a bullish outlook and monitor price movements until the pair breaks below the weekly 20-day MA.
Today, at 15:00 Asia time, Japan’s machine tool orders will be released; at 16:00 Europe time, the UK’s GDP, industrial production, and trade balance, along with Turkey’s unemployment rate and current account balance, will be released; and at 21:00, India’sIndustrial Production and India’s Consumer Price Index at 16:00 in European time, the US 3-year Treasury auction at 25:30 in US time, the US 10-year Treasury auction at 27:00, the US budget balance at 28:00, and remarks by BOC Governor Macklem at 29:25. With a series of economic indicators being released in the UK, we will be closely monitoring price movements to see if the pound experiences significant fluctuations.
Author: Keisuke Sakurai
