Market participants may be on alert due to a flurry of remarks by key figures in U.S. time
03.03.2023
- Bostic (U.S.): Remarks by the President of the Atlanta Federal Reserve Bank
- MIS/ISM Non-Manufacturing Purchasing Managers' Index
In yesterday’s U.S. currency trading, the U.S. dollar emerged as the strongest currency despite the fact that the U.S. fourth-quarter labor productivity index, released yesterday, came in at 1.7%, falling short of market expectations 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 4-hour Bollinger Bands from -2σ to +2σ.However, with a number of key speeches scheduled during U.S. trading hours today, traders should be on guard for sharp fluctuations in the U.S. dollar depending on the content of those remarks.
Among European currencies, the pound fell sharply against the U.S. dollar.GBP/USD fell from 1.2035 to 1.1925, retreating to the 200-day simple moving average (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. We will be watching closely to see if this price range shifts 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 08:30, Canada’s housing starts and fourth-quarter labor productivity at 22:30, and the US services PMI at 23:45,at 12:00 AM: US ISM Non-Manufacturing PMI; at 1:00 AM: Remarks by Logan, President of the Dallas Fed; at 2:00 AM: Remarks by Bostic, President of the Atlanta Fed; at 4:00 AM: Remarks by Waller, Fed Governor; and at 5:00 AM: Remarks by Bowman, Fed Governor.We will be closely monitoring whether remarks by key officials over the weekend (U.S. time) will cause currency strength to shift.
Author: Keisuke Sakurai
