All eyes are on whether comments from Tenreiro, a member of the MPC, will cause the pound to move
04.04.2023
- Eurozone Producer Price Index
- Remarks by MPC Member Tenreiro of the UK
In the previous day’s U.S. currency trading, the 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. If it breaks above the recent high of 1.0927, it will likely target this year’s high of 1.1031, so we should remain cautious of the dollar’s weakness.
Among European currencies, the EUR/GBP pair has been trending slightly lower, falling from 0.8806 to 0.8771. Since the EUR/GBP has already fallen below the 20-period moving average on the 4-hour chart and the RSI is trending downward on the daily chart, traders should pay close attention to market volatility driven by key speeches and economic data releases during today’s European trading session.
Today’s schedule includes Germany’s trade balance at 3:00 PM, the Eurozone’s producer price index at 6:00 PM, remarks by MPC member Tenreyro of the UK at 6:15 PM, Canada’s housing starts at 9:30 PM,at 11:00 PM, US new manufacturing orders and US JOLTS job openings; at 11:30 PM, remarks by UK MPC member Pill; at 2:30 AM, remarks by US Federal Reserve Governor Cook; at 2:45 AM, remarks by US Federal Reserve Bank of Boston President Collins; and at 7:15 AM the following day, remarks by US Federal Reserve Bank of Cleveland President Mester.We will be watching closely to see if remarks by UK MPC member Tenreiro trigger any movement in the pound.
Author: Keisuke Sakurai
