Investors should keep a close eye on the series of economic indicators set to be released in the U.S.
24.01.2023
- UK Manufacturing/Services PMI
- Richmond Fed Manufacturing Index
U.S. currencies were firm the previous day as the Dollar Index recovered to 102.2, limiting the downside for the U.S. dollar; GBP/USD fell by approximately 120 pips from 1.2447 to 1.2322.GBP/USD had been rising along the daily 10-day moving average since the 6th of this month, but its upside was capped as it reached its recent high. On the weekly chart, the 75-day moving average is beginning to act as resistance, so we will be watching closely to see if the pullback continues.
Like the pound, the euro weakened against the U.S. dollar. The EUR/USD pair fell by about 80 pips from 1.0926 to 1.0845. Although the EUR/USD has not yet fallen below the 20-period moving average on the 4-hour chart, the daily RSI is showing signs of divergence just below the 70 level, so traders should be on guard for price volatility following the release of economic indicators during U.S. trading hours.
Today, at 4:00 PM, the German GfK Consumer Confidence Survey; at 5:15 PM, the French Manufacturing/Services PMI; at 5:30 PM, the German Manufacturing/Services PMI; at 6:00 PM, the Eurozone Manufacturing/Services PMI; at 6:30 PM, the UKManufacturing/Services PMI, a speech by ECB President Lagarde at 6:45 PM, U.S. Manufacturing/Services PMI at 11:45 PM, the Richmond Fed Manufacturing Index at midnight, a speech by SNB Vice Chairman Schlegel at 1:30 AM, and a U.S. 2-year Treasury auction at 3:00 AM.We will monitor currency strength and weakness while keeping an eye on the succession of economic indicators scheduled for release during U.S. trading hours.
Author: Keisuke Sakurai
