With the ECB meeting coming up the day after tomorrow, all eyes are on the direction of the euro, which has shown resilience on the downside

With the ECB meeting coming up the day after tomorrow, all eyes are on the direction of the euro, which has shown resilience on the downside

03.05.2023

In the U.S. currency market yesterday, the U.S. dollar traded in a tight range against the euro after the March U.S. manufacturing new orders data, released yesterday, came in at 0.9%—exceeding the previous reading of -0.7% and surpassing market expectations of 0.8%.The EUR/USD pair traded within a range of 1.0942 to 1.1007 as it sought direction, remaining range-bound around the 20-period moving average on the 4-hour chart. We will be closely monitoring today’s FOMC meeting to see if it provides a clear direction for the EUR/USD pair.

European currencies rose against the pound as the Eurozone’s April consumer price index, released yesterday, rose to 7.0% from 6.9% the previous month.The euro/pound pair rose from 0.8764 to 0.8824, breaking above the 200-period simple moving average (SMA) on the hourly chart. Since the pair appears to be moving toward the upper boundary of its weekly uptrend line, it will be worth watching whether the euro remains firm heading into the weekend.

Today’s economic indicators include Turkey’s Producer Price Index and Consumer Price Index at 16:00, the Eurozone’s employment statistics at 18:00, the U.S. MBA Mortgage Applications Index at 20:00, the U.S. ADP Employment Report at 21:15, the U.S. PMI at 22:45,at 23:00, the U.S. ISM Non-Manufacturing Index; at 23:30, U.S. weekly crude oil inventories; at 27:00, the FOMC policy rate decision and statement; and at 27:30, a press conference by Fed Chair Powell.Ahead of the ECB meeting the day after tomorrow, we will be watching the direction of the euro, which is showing resilience on the downside.