Attention is turning to the pound’s upside potential following strong PMI data
22.02.2023
- U.S. 5-Year Treasury Auction
- Germany's Consumer Price Index
In yesterday’s U.S. currency trading, the U.S. dollar rose against the euro after the U.S. February Composite PMI, released yesterday, came in at 50.2—significantly exceeding the market forecast of 47.4 and surpassing the benchmark level of 50.The EUR/USD pair fell from 1.0696 to 1.0637, breaking below the upper boundary of the 4-hour downtrend line. Technically, the EUR/USD is declining with its upside capped by the 4-hour 20-period moving average (MA), so we should be on guard for further declines during U.S. trading hours.
European currencies rose yesterday as the pound gained against the Australian dollar following the release of improved PMI figures. The GBP/AUD pair climbed approximately 340 pips from 1.7397 to 1.7740. During today’s Asian trading session, the pair continues to test the upside. Since the GBP/AUD pair is currently in a strong uptrend along the 10-period moving average on the hourly chart, we will monitor the price while keeping an eye out for RSI divergence.
Today, at 4:00 p.m. CET, Germany’s Consumer Price Index, Turkey’s Economic Sentiment Index, and Capacity Utilization Rate will be released; at 6:00 p.m. CET, Germany’s IFO Business Climate Index will be released; at 9:00 p.m. CET, the U.S. MBA Mortgage Applications Index will be released; and at 3:00 a.m. EST, the U.S. 5-year Treasury auction is scheduled.at 28:00, the release of the U.S. FOMC minutes, and at 7:30 the following day, remarks by U.S. Federal Reserve Bank of New York President Williams. We will be watching for upside momentum in the pound following the strong PMI reading.
Author: Keisuke Sakurai
