With the ECB meeting tomorrow, all eyes are on the euro, which is showing signs of strength
15.03.2023
- U.S. New York Fed Manufacturing Index
- Europe: Industrial Production
In the U.S. currency market yesterday, the dollar strengthened after the U.S. February Consumer Price Index, released yesterday, came in at 6.0% year-over-year, in line with market expectations. GBP/USD fell from 1.2203 to 1.2135, trading around the 20-period moving average on the hourly chart. On the 4-hour chart, GBP/USD appears to be forming a head-and-shoulders pattern, so traders should be wary of a decline in the pound during European trading hours.
Ahead of tomorrow’s ECB policy rate announcement, the euro strengthened against the yen. The EUR/JPY pair rose by approximately 180 pips from 142.532 to 144.4044. This rebound occurred at higher levels, supported by the daily 200-day SMA.Since the EUR/JPY broke above the daily 20-day moving average following yesterday’s rebound, we will be watching closely to see if it can break above the upper limit of the downtrend line at 145.153.
Today’s economic indicators include Turkish home sales at 4:00 PM, the French Consumer Price Index at 4:45 PM, Eurozone industrial production at 7:00 PM, South African retail sales and the U.S. MBA Mortgage Applications Index at 8:00 PM, Canadian housing starts at 9:15 PM, U.S. retail sales at 9:30 PM,U.S. Producer Price Index and U.S. NY Fed Manufacturing Index at 20:00, Canadian Existing Home Sales at 22:00, U.S. Business Inventories and U.S. NAHB Housing Market Index at 23:00, and U.S. Weekly Crude Oil Inventories at 23:30. With the ECB meeting tomorrow, we will carefully monitor the euro’s movements as it remains firm.
Author: Keisuke Sakurai
