Bostic: Market participants should watch for price movements following remarks by the Atlanta Fed president
05.01.2023
- Bostic (U.S.): Remarks by the President of the Atlanta Federal Reserve Bank
- UK Services PMI
In the previous day's U.S. currency trading, the dollar weakened against the euro as the Dollar Index fell to 104.2. The EUR/USD pair rebounded by approximately 935 pips, rising from 1.0540 to 1.0633.The rally began from the support level provided by the 200-period simple moving average (SMA) on the 4-hour chart. However, since yesterday’s rebound brought the pair back into a range-bound trading pattern, we should exercise caution in assessing the overall trend until the upward momentum continues and the pair breaks above the recent high of 1.0680.
European currencies saw lackluster trading, as the services PMI figures released yesterday for France, Germany, and the Eurozone exceeded market expectations but failed to reach the benchmark level of 50.GBP/USD entered a stalemate, rising from 1.1956 before consolidating around 1.2054. The pair continues to lack direction during today’s Asian session, trading with support at the 20-period moving average on the 4-hour chart; therefore, we will be closely monitoring price action during the U.S. session.
Today’s schedule includes Germany’s trade balance at 4:00 PM, the UK’s services PMI at 6:30 PM, the Eurozone’s producer price index at 7:00 PM, the U.S. Challenger job cuts forecast and remarks by Harker, President of the Federal Reserve Bank of Philadelphia, at 9:30 PM, the U.S. ADP National Employment Report at 10:15 PM, and Canada’s trade balance at 10:30 PM,U.S. Initial Jobless Claims, U.S. Trade Balance, 11:20 PM: Remarks by Bostic, President of the Atlanta Fed, 11:45 PM: U.S. Services PMI, 12:30 AM: U.S. Weekly Natural Gas Inventories, 1:00 AM: U.S. Weekly Crude Oil Inventories, 3:20 AM: Remarks by Bullard, President of the St. Louis Fed.We will monitor currency strength and weakness while paying close attention to remarks by key figures during U.S. trading hours.
Author: Keisuke Sakurai
