Should we be on the lookout for increased volatility following remarks by key figures in the U.S.?
16.05.2023
- Goolsbee (U.S.): Remarks by the President of the Chicago Fed
- Germany's ZEW Economic Sentiment Survey
In the U.S. currency market yesterday, the U.S. dollar temporarily weakened against the yen after the May New York Fed Manufacturing Index, released yesterday, came in at -31.8—significantly below the market forecast of -3.8.The USD/JPY pair fell from 136.319 to 135.700. Although it subsequently fluctuated, it has not broken through either the high or low during today’s Asian session and is currently stagnating just below the 20-period moving average on the hourly chart. With numerous key speeches scheduled for today, we should remain vigilant for potential volatility depending on the content of those remarks.
The euro rose slightly against the yen following yesterday’s release of March industrial production data for the eurozone, which showed a year-on-year decline of 1.4%—down from the previous month’s 2.0% increase. The EUR/JPY pair rose by approximately 90 pips, from 147.197 to 148.178.During today’s Asian session, the 200-period simple moving average (SMA) on the hourly chart has acted as a resistance level, causing prices to stall. We will closely monitor whether the euro recovers against the yen as we move into the European session.
Today’s economic indicators include the UK unemployment rate at 3:00 PM, Turkish home sales at 4:00 PM, the German ZEW Economic Sentiment Survey and Eurozone Q1 GDP at 6:00 PM, remarks by Mester, President of the Federal Reserve Bank of Cleveland, at 9:15 PM, the Canadian Consumer Price Index and U.S. retail sales at 9:30 PM, and at 10:15 PM, U.S.Industrial Production, and U.S. Capacity Utilization; at 23:00, remarks by ECB President Lagarde and U.S. Fed Vice Chair Bar; at 25:15, remarks by U.S. Fed President Williams; at 27:30, remarks by U.S. Fed President Goolsbee; and at 28:15, remarks by U.S. Fed President Logan.We should remain vigilant to see if volatility increases due to these key speeches during U.S. trading hours.
Author: Keisuke Sakurai
