Will the rising euro continue to climb? We’ll be watching closely.
12.01.2023
- U.S. Consumer Price Index
- Remarks by a Member of the Bank of England’s Monetary Policy Committee
The previous day, the U.S. dollar faced resistance due to a decline in the yield on 10-year U.S. Treasury bonds.Yesterday, Boston Fed President Collins suggested in an interview with The New York Times that the next FOMC rate hike could be reduced to 0.25%, which also contributed to the dollar’s weakness. The euro rose slightly against the dollar, from 1.0724 to 1.0776. As the pair continues to hit new highs from last month, we will be watching closely to see if the dollar weakens further during U.S. trading hours.
In the European currency market, the euro strengthened against the pound, with the EUR/GBP pair rising by approximately 60 pips from 0.820 to 0.8881.EUR/GBP hit a new high last month, and on the daily chart, the 20-day moving average is acting as a support level, indicating an upward trend. Since the 100% Fibonacci expansion level based on the recent peak is at 0.8950, we will be watching to see if price action on higher timeframes moves higher.
Today’s schedule includes the ECB’s monthly report at 6:00 PM, U.S. initial jobless claims and the U.S. Consumer Price Index at 10:30 PM, remarks by Harker, President of the Federal Reserve Bank of Philadelphia, at 10:45 PM, U.S. weekly natural gas inventories at 12:30 AM, and remarks by Braad,St. Louis Fed President, at 2:00 AM UK time: Remarks by MPC member Mann, at 2:40 AM UK time: Remarks by US Richmond Fed President Barkin, and at 3:00 AM UK time: US 30-year Treasury 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
