Will the Rising Euro Continue to Gain Ground? All Eyes Are on It
12.01.2023
- U.S. Consumer Price Index
- Remarks by a Member of the Bank of England’s Monetary Policy Committee
In the previous day’s trading, the U.S. dollar faced resistance due to a decline in the yield on 10-year U.S. Treasuries. Another factor contributing to the dollar’s weakness was a comment made yesterday by Collins, President of the Federal Reserve Bank of Boston, in an interview with The New York Times, in which he suggested that “the next FOMC rate hike could be reduced to 0.25%.”The euro rose slightly against the U.S. dollar, from 1.0724 to 1.0776. As the pair has continued to hit new highs this month, we will be watching closely to see if the U.S. dollar weakens further during U.S. trading hours.
Among European currencies, the euro strengthened against the pound, with the EUR/GBP pair rising by about 60 pips from 0.820 to 0.8881.The EUR/GBP pair hit a new high last month, and on the daily chart, the 20-day moving average (MA) is acting as a support level, indicating an upward trend. Since the 100% Fibonacci expansion level based on the most recent peak is at 0.8950, it will be interesting to see if the price moves higher on higher time frames.
Today’s schedule includes the ECB’s monthly report at 18:00, U.S. initial jobless claims and the U.S. Consumer Price Index at 22:30, remarks by U.S. Federal Reserve Bank of Philadelphia President Harker at 22:45, U.S. weekly natural gas inventories at 24:30,at 25:30, remarks by U.S. Federal Reserve Bank of St. Louis President Braad; at 26:00, remarks by a member of the Bank of England’s Monetary Policy Committee (MPC); at 26:40, remarks by U.S. Federal Reserve Bank of Richmond President Barkin; and at 27:00, a U.S. 30-year Treasury bond auction.We will be watching closely to see if the euro, which has been on the rise, will continue to gain ground.
Author: Keisuke Sakurai
