Market participants may be on guard against increased volatility due to overlapping economic data releases in U.S. time
10.03.2023
- Canada: Employment Statistics
- U.S. Employment Report
In the U.S. currency market the previous day, the U.S. 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 20-period moving average (MA) on the 4-hour chart. However, it is still far from reaching the recent high of 1.2042, and resistance from the 75-period MA on the 4-hour chart lies ahead. We will be watching today’s U.S. employment report to see if the U.S. dollar’s decline continues.
Ahead of today’s GDP release, the pound is trading sideways against the yen.GBP/JPY is trading in a range between 161.610 and 162.614, with the hourly Bollinger Bands contracting. However, although the Bollinger Bands are contracting, they are trending downward and gradually lowering the upper boundary, so traders should be wary of a potential decline in the pound during European trading hours.
Today, at 16:00 European time, UK GDP, UK industrial production, UK manufacturing output, UK trade balance, UK goods trade balance, Norway’s consumer price index, Germany’s consumer price index, Turkey’s unemployment rate, and Turkey’s industrial production are scheduled to be released; at 16:45, France’s current account balance,and France’s trade balance. During U.S. trading hours at 22:30, Canada’s employment report, the U.S. employment report, and Canada’s capacity utilization rate are scheduled, followed by the U.S. fiscal balance at 28:00. We should be on guard for increased volatility due to the overlapping release of economic indicators during U.S. trading hours.
Author: Keisuke Sakurai
