Market participants may be on alert for volatility in the euro following remarks by ECB President Lagarde
04.05.2023
- ECB Policy Rate and Statement Release
- Press Conference by ECB President Lagarde
In yesterday’s U.S. currency markets, the U.S. dollar became the weakest currency after the FOMC announced a 0.25% hike in the policy rate to 5.00–5.25%, in line with market consensus. The EUR/USD pair rose by approximately 936 pips from 1.0996 to 1.1091, forming an uptrend along the 10-period moving average on the hourly chart.With yesterday’s rise, EUR/USD is approaching this year’s high. Since the 20-day moving average is providing support on the daily chart, we will be watching for further gains during U.S. trading hours.
Ahead of today’s ECB policy rate announcement, the euro rose against the Australian dollar. The EUR/AUD pair climbed from 1.6500 to 1.6594. However, during today’s Asian trading session, the euro became the weakest currency and has since pulled back. Since the RSI on the daily chart for EUR/AUD is trading in a range around 70, traders should be on guard for a sharp drop following the release of economic indicators.
Today’s schedule includes Germany’s trade balance at 3:00 PM, the UK’s services PMI and mortgage approvals at 5:30 PM, the Eurozone’s producer price index at 6:00 PM, the U.S. Challenger job cuts forecast at 8:30 PM, the ECB’s policy rate decision and statement at 9:15 PM, Canada’s trade balance at 9:30 PM,at 9:45 PM, a press conference by ECB President Lagarde; at 11:00 PM, the Canadian Ivey PMI; at 11:30 PM, U.S. weekly natural gas inventories; and at 1:50 AM, remarks by BOC Governor Maclean. We should be on the lookout for price volatility, as the euro may experience sharp fluctuations following President Lagarde’s remarks at the ECB.
Author: Keisuke Sakurai
