With few key economic indicators available, will the release of these figures affect currency strength?

With few key economic indicators available, will the release of these figures affect currency strength?

02.06.2023

In the U.S. currency market yesterday, the dollar fell against the euro after the number of new U.S. unemployment insurance claims, released yesterday, rose to 232,000 from the previous reading of 229,000.The EUR/USD pair rose by approximately 100 pips from 1.0661 to 1.0767, breaking above the 200-period simple moving average (SMA) on the hourly chart. On the 4-hour chart, the pair rebounded just below the 75-period SMA, effectively avoiding a new low for the year. From a technical perspective, since the pair rebounded without touching the neckline around 1.0528, it will be worth watching to see if the upward trend continues.

The euro rebounded against the yen after ECB President Lagarde stated that “there is no clear evidence that core inflation has peaked,” effectively dampening expectations of an imminent pause in rate hikes. As the dollar weakened against the yen, the euro rose by about 1 yen against the yen, climbing from 148.618 to 149.668.During today’s Asian trading session, the pair has maintained an upward trend, supported by the 20-period moving average on the hourly chart. We will closely monitor price movements during European trading hours to determine whether the euro’s rebound against the yen will continue.

Today’s schedule includes French industrial production and the French manufacturing production index at 3:45 p.m. during Asian trading hours, Brazilian industrial production at 9:00 p.m. during European trading hours, and U.S. employment data at 9:30 p.m. during U.S. trading hours. There are no major policy speeches scheduled, so the economic calendar is relatively light. Additionally, New Zealand markets will be closed at the start of the week due to a public holiday.With few major economic indicators on the agenda, we will carefully monitor the market to see if these releases cause any shifts in currency strength or direction.