Market participants may be wary of the euro's upside potential amid hawkish comments from key figures
17.02.2023
- U.S. – Barkin: Remarks by the President of the Richmond Federal Reserve Bank
- France: Consumer Price Index
In yesterday’s U.S. currency trading, the U.S. dollar strengthened after the U.S. January Producer Price Index, released yesterday, came in at 6.0%, exceeding the market forecast of 5.4%. The EUR/USD pair fell from 1.0721 to 1.0655, dropping from the daily 10-day moving average to the -2σ line of the Bollinger Bands.Technically, the EUR/USD pair has continued to decline during today’s Asian session. With the daily RSI having fallen from a high of 70 to around 40, traders should remain cautious of a continued decline into the U.S. session.
European currencies saw the euro surge against the pound yesterday after Bundesbank President Nagel stated that "interest rates have not yet reached restrictive territory." The euro/pound pair rose from 0.8871 to 0.8908.The rise was supported by the 10-day moving average on the daily chart. On the 4-hour chart, the RSI has not yet reached 70, indicating room for further movement. We will need to carefully assess whether the euro will continue to strengthen against the pound.
Today’s economic indicators include UK retail sales, German producer price index, and Turkish home sales at 4:00 PM; French consumer price index at 4:45 PM; and the Eurozone current account balance at 6:00 PM;at 10:30 PM: US Import Price Index, US Export Price Index, Canada International Securities Turnover, Canada Industrial Product Prices, and remarks by Barkin, President of the Richmond Fed; at 10:45 PM: remarks by Bowman, Fed Governor; at 12:00 AM: US Leading Economic Index; and at 1:00 AM: Russia Real GDP.We will closely monitor the upside potential of the euro, which has been strengthening on the back of hawkish comments from key officials.
Author: Keisuke Sakurai
