Markets are watching the pound’s direction as the unemployment rate rose from 3.9% to 4.0%
17.05.2023
- Remarks by Bank of England Governor Bailey
- U.S. MBA Mortgage Applications Index
In the previous day’s U.S. currency trading, the U.S. dollar emerged as the strongest currency during U.S. trading hours after Cleveland Fed President Mester stated that “interest rates are not at sufficiently restrictive levels,” and other officials made a series of comments dampening expectations for rate cuts. The EUR/USD pair fell by approximately 50 pips from 1.0904 to 1.0854. The 75-period moving average on the hourly chart acted as resistance, causing the pair to reverse lower.Given that yesterday’s decline in EUR/USD continued the downward trend along the 4-hour 20-MA, traders should remain cautious regarding the direction of the market during European trading hours.
Among European currencies, the pound rose against the yen following yesterday’s release of the UK’s April employment statistics, which showed the unemployment rate rising by 0.1 percentage points from 3.9% to 4.0%. The GBP/JPY pair climbed approximately 150 pips from 169.379 to 170.834, breaking slightly above the upper boundary of the descending parallel channel on the 4-hour chart.As prices are testing the upside during today’s Asian session, it will be worth watching whether they extend their gains again during European trading hours.
Today’s schedule includes the Eurozone Consumer Price Index at 6:00 p.m. CET, remarks by Bank of England Governor Bailey at 6:50 p.m. CET, South African retail sales at 8:00 p.m. CET,the U.S. MBA Mortgage Applications Index at 20:30, and the Turkish Housing Price Index at 20:30. During U.S. trading hours, we have the Canadian International Securities Turnover at 21:30, U.S. Housing Starts and Building Permits at 21:30, U.S. Weekly Crude Oil Inventories at 23:30, the U.S. 20-Year Treasury Auction at 26:00, and the New Zealand Q1 Producer Price Index at 7:45 the following day.We will be closely monitoring the direction of the British pound, as the unemployment rate rose from 3.9% to 4.0%.
Author: Keisuke Sakurai
