Will the euro rise against the pound? All eyes are on the direction of the currency pair.
25.01.2023
- U.S. MBA Mortgage Applications Index
- UK Producer Price Index (PPI)
In the U.S. currency market yesterday, the EUR/USD fell following the release of strong U.S. January PMI data. The EUR/USD dropped by approximately 60 pips from 1.0896 to 1.0835. The decline halted as the pair found support at the 200-period SMA on the hourly chart.The EUR/USD pair has rebounded during today’s Asian trading session and has already offset yesterday’s losses. Since the uptrend along the 10-day moving average (MA) continues on the daily chart, we will be watching to see if the upward price movement persists.
European currencies saw the euro rise against the pound after yesterday’s European PMI data showed an increase for the first time in seven months. The euro/pound pair rose by about 80 pips, from 0.8767 to 0.8846, and showed signs of recovery as it once again moved above the daily 20-day moving average.From a technical perspective, with the weekly 20-day MA and 200-day SMA forming a golden cross, it is important to carefully assess whether the euro will continue to strengthen against the pound.
Today’s schedule includes the UK Producer Price Index, Turkey’s Economic Sentiment Index, and Turkey’s Capacity Utilization Rate at 16:00 European time; the German IFO Business Climate Index at 18:00; the U.S. MBA Mortgage Applications Index at 21:00; and, at 24:00 U.S. time, Canada’sBOC policy rate and statement, at 24:30 U.S. weekly crude oil inventories, at 25:00 a press conference by BOC Governor Macleem, and at 27:00 a U.S. 5-year Treasury auction.With the UK PPI release on the horizon, we’ll need to carefully assess whether the euro will rise against the pound.
Author: Keisuke Sakurai
