Be on the lookout for sharp fluctuations in the U.S. dollar following the release of U.S. employment data
03.02.2023
- U.S. Employment Report
- MIS/ISM Non-Manufacturing Purchasing Managers' Index
In yesterday's U.S. currency trading, the Canadian dollar fell, and the USD/CAD pair rose by just under 90 pips from 1.3261 to 1.3346.The USD/CAD pair rebounded at the point where it touched the 200-day EMA on the daily chart, leading to yesterday’s rise. If the pair tests the downside again and successfully rebounds, the US dollar is likely to strengthen against the Canadian dollar; therefore, we will be watching today’s US employment report closely.
Among European currencies, the pound fell against the U.S. dollar after the Bank of England raised its policy rate by 0.5% yesterday to 4.0%. The GBP/USD pair dropped by approximately 200 pips from 1.2400 to 1.2202.The decline halted as the pair found support at the 200-period simple moving average (SMA) on the 4-hour chart. Following yesterday’s drop, GBP/USD has fallen below the 20-period moving average (MA) on the daily chart, ending the one-month-long uptrend that had been in place since last month. Therefore, we should remain cautious of a continued decline.
Today, at 4:00 PM, Turkey’s Consumer Price Index and Producer Price Index will be released; at 4:45 PM, France’s Industrial Production and Manufacturing Production Index; at 5:50 PM, France’s Services PMI; at 5:55 PM, Germany’s Services PMI; at 6:00 PM, the Eurozone’s Services PMI; at 6:30 PM, the UK’s Services PMI;the Eurozone Producer Price Index at 7:00 PM, remarks by UK MPC member Pill at 9:15 PM, U.S. Employment Report at 10:30 PM, U.S. Services PMI at 11:45 PM, U.S. ISM Non-Manufacturing PMI at 12:00 AM, and remarks by the President of the San Francisco Fed at 4:30 AM.We should pay close attention to any sharp fluctuations in the US dollar following the release of the US employment report.
Author: Keisuke Sakurai
