Should We Be Wary of Sharp Fluctuations in the U.S. Dollar Following the Release of U.S. Employment Data?
03.02.2023
- U.S. Employment Report
- U.S. ISM Non-Manufacturing Purchasing Managers' Index
In the U.S. currency market the previous day, 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 support level again and successfully rebounds, the U.S. dollar is likely to strengthen against the Canadian dollar; therefore, we will be watching closely for the release of the U.S. employment report during U.S. trading hours today.
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 fell by about 200 pips from 1.2400 to 1.2202.The decline halted as the pair found support at the 200-period SMA on the 4-hour chart. Following yesterday’s decline, GBP/USD has fallen below the 20-period MA on the daily chart, marking the end of the one-month uptrend that lasted through last month; therefore, traders should remain cautious of a continued decline.
Today, at 16:00, Turkey’s Consumer Price Index and Producer Price Index will be released, followed by France’sIndustrial Production, and the French Manufacturing Production Index; at 17:50, the French Services PMI; at 17:55, the German Services PMI; at 18:00, the Eurozone Services PMI; at 18:30, the UK Services PMI; at 19:00, the EurozoneProducer Price Index, at 21:15 UK MPC Member Pill’s remarks, at 22:30 US Employment Report, at 23:45 US Services PMI, at 24:00 US ISM Non-Manufacturing Index, and at 28:30 US Daily:Remarks by the President of the San Francisco Fed. Please pay close attention to any sharp fluctuations in the U.S. dollar following the release of the U.S. employment report.
Author: Keisuke Sakurai
