All eyes are on whether remarks by Tenreiro, a member of the MPC, will cause the pound to move
04.04.2023
- European Producer Price Index
- Remarks by Tenreiro, a Member of the MPC in the UK
In the previous day’s U.S. currency trading, the U.S. dollar faced resistance despite Federal Reserve Governor Cook stating, “We are seeing disinflation, but further action is needed,” and the EUR/USD pair rose by approximately 120 pips from 1.0787 to 1.0916.On the daily chart, the EUR/USD pair continues to rise, supported by the 10-day moving average (10MA) on the downside. If it breaks above the recent high of 1.0927, it will target this year’s high of 1.1031; therefore, traders should remain cautious of the U.S. dollar’s weakness.
Among European currencies, the EUR/GBP pair—which involves two European currencies—is showing a gradual downward trend, falling from 0.8806 to 0.8771.In addition to the EUR/GBP having already fallen below the 20-period moving average on the 4-hour chart, the RSI is trending downward on the daily chart; therefore, traders should pay close attention to potential volatility caused by key officials’ remarks and economic data releases during today’s European trading session.
Today’s schedule includes Germany’s trade balance at 3:00 p.m., the Eurozone’s Producer Price Index at 6:00 p.m., remarks by UK MPC member Tenreyro at 6:15 p.m., Canada’s housing permits at 9:30 p.m.,at 11:00 PM, U.S. new manufacturing orders and U.S. JOLTS job openings; at 11:30 PM, remarks by UK MPC member Pill; at 2:30 AM, remarks by U.S. Federal Reserve Governor Cook; at 2:45 AM, remarks by U.S. Federal Reserve Governor Collins:Speech by Boston Fed President Collins, and at 7:15 the following day, a speech by U.S. Cleveland Fed President Mester is scheduled. We will be watching closely to see if the remarks by UK MPC Member Tenreyro trigger any movement in the pound.
Author: Keisuke Sakurai
