Should we pay close attention to President Lagarde’s remarks at the ECB?
16.03.2023
- Press Conference by ECB President Lagarde
- Philadelphia Fed Business Outlook Index
In the U.S. currency market yesterday, the U.S. dollar fell against the yen after the U.S. February Producer Price Index (PPI), released yesterday, came in at 4.6% year-over-year, below the market forecast of 5.4%.USD/JPY fell by approximately 300 pips from 135.108 to 132.216. It broke below the 200-period simple moving average (SMA) on the 4-hour chart. Since a head-and-shoulders pattern is currently forming on the weekly chart for USD/JPY, a break below 130 yen should be considered a possibility if the pair continues to decline.
Ahead of today’s ECB policy rate announcement, the euro fell sharply against the U.S. dollar.The EUR/USD pair fell by approximately 240 pips from 1.0759 to 1.0516. The decline was halted as the price found support just below the daily 200-day EMA. It is currently trading between the 23.6% and 38.2% Fibonacci retracement levels on the daily chart, making the direction of the market difficult to predict. We will be closely monitoring today’s ECB meeting to see if it generates any significant momentum.
Today, the Turkish Housing Price Index is scheduled for 20:30 CET, followed by U.S. Initial Jobless Claims, Housing Starts, Building Permits, the Philadelphia Fed Business Outlook Index, and the U.S. Import Price Index at 21:30 EST. At 22:15 CET, theECB policy rate and statement, at 22:45 the ECB President Lagarde’s press conference, and at 23:30 the U.S. weekly natural gas inventories. We should pay close attention to President Lagarde’s remarks at the ECB.
Author: Keisuke Sakurai
