Market participants may be on guard against increased volatility due to a flurry of economic data releases scheduled for U.S. trading hours

Market participants may be on guard against increased volatility due to a flurry of economic data releases scheduled for U.S. trading hours

10.03.2023

In the U.S. currency market yesterday, the dollar fell against the pound after initial jobless claims rose for the first time in eight weeks. The GBP/USD pair rose from 1.1831 to 1.1938.It broke above the 4-hour 20-MA. However, it is still far from reaching the recent high of 1.2042, and resistance from the 4-hour 75-MA lies ahead. We will be watching today’s U.S. employment report to see if the dollar’s decline continues.

Ahead of today’s GDP release, the pound is trading sideways against the yen. GBP/JPY is ranging between 161.610 and 162.614, with the hourly Bollinger Bands contracting. However, while the Bollinger Bands are contracting, they are trending downward and gradually lowering the upper band, so traders should be on the lookout for a potential decline in the pound during European trading hours.

Today, at 16:00 CET, UK GDP, UK Industrial Production, UK Manufacturing Output, UK Trade Balance, UK Goods Trade Balance,Norway’s Consumer Price Index (CPI), Germany’s CPI, Turkey’s unemployment rate, and Turkey’s industrial production; at 16:45, France’s current account balance and trade balance; and during U.S. trading hours at 22:30, Canada’s employment report, the U.S. employment report, and Canada’s capacity utilization rate; and at 28:00, the U.S. fiscal balance. We should be on guard for increased volatility due to the overlapping release of economic indicators during U.S. trading hours.