Caution Over a Flurry of Statements by Key Figures During U.S. Trading Hours?
03.03.2023
- Bostic (U.S.): Remarks by the President of the Atlanta Federal Reserve Bank
- U.S. ISM Non-Manufacturing Purchasing Managers' Index
In the U.S. currency market yesterday, the U.S. dollar emerged as the strongest currency, even though the U.S. fourth-quarter labor productivity index—released yesterday—came in at 1.7%, below the market forecast of 2.6%.The USD/JPY pair rose from 136.042 to 137.071, rebounding to a new recent high within the range of the -2σ to +2σ Bollinger Bands on the 4-hour chart. With a number of key officials scheduled to speak during U.S. trading hours today, traders should be on guard for sharp fluctuations in the U.S. dollar depending on the content of their remarks.
Among European currencies, the pound fell sharply against the U.S. dollar. The GBP/USD pair dropped from 1.2035 to 1.1925.It pulled back to the 200-day SMA on the daily chart. However, looking at the 4-hour chart, GBP/USD is trading in a range between 1.1921 and 1.2144, so we will be watching closely to see if this price range changes following the release of economic indicators and comments from key figures over the weekend.
Today’s economic indicators include Germany’s trade balance and Turkey’s consumer price index at 16:00; France’s industrial production and manufacturing production index at 16:45; the UK’s services PMI at 8:30; Canada’s housing starts at 22:30;Canada’s Q4 labor productivity, at 23:35: U.S. Services PMI, at 24:00: U.S. ISM Non-Manufacturing Index, at 25:00: U.S. Logan:Dallas Fed President’s remarks; at 26:00, U.S. Bostic: Atlanta Fed President’s remarks; at 28:00, U.S. Waller, Fed Governor’s remarks; and at 29:00, U.S. Bowman, Fed Governor’s remarks are scheduled.We will be closely monitoring whether remarks by key officials this weekend (U.S. time) will cause currency strength to shift.
Author: Keisuke Sakurai
