All eyes are on whether remarks by key figures will affect currency strength
05.06.2023
- Remarks by ECB President Lagarde
- European Services PMI
Last weekend, the U.S. dollar rose against the euro following the release of the U.S. May employment report on Friday, the 2nd, which showed that average hourly earnings had declined from 4.4% to 4.3% year-over-year. The EUR/USD pair fell by approximately 70 pips from 1.0778 to 1.0704.Although the pair had broken above the 20-period moving average (MA) on the 4-hour chart, it reversed lower after encountering resistance at the 75-period MA. On the higher-time-frame daily chart, the EUR/USD pair is being capped by the 10-period MA, so traders should remain cautious as to whether it will extend its decline and break below the recent low.
Among European currencies, the pound fell against the U.S. dollar ahead of today’s release of the services PMI. The GBP/USD pair fell by about 100 pips from 1.2544 to 1.2441.This pullback occurred immediately after the pair broke above the daily 20-period moving average (MA). However, on the higher-time-frame weekly chart, GBP/USD is finding support at the 20-period MA; therefore, if the decline continues, we will be watching closely to see if the pair breaks below the support level at 1.2309.
Today, at 3:00 p.m., Germany’s trade balance will be released,at 3:30 p.m., the Swiss Consumer Price Index; at 4:00 p.m., the Turkish Consumer Price Index; at 4:50 p.m., the French Services PMI; at 4:55 p.m., the German Services PMI; at 5:00 p.m., the Eurozone Services PMI; at 5:30 p.m., the UKServices PMI at 3:30 PM, the Eurozone Producer Price Index at 6:00 PM, the U.S. PMI Purchasing Managers’ Index at 10:45 PM, remarks by ECB President Lagarde at 10:00 PM, the U.S. ISM Non-Manufacturing Index at 11:00 PM, and U.S. Durable Goods Orders at 11:00 PM.We will carefully assess whether these key speeches will cause currency strength or weakness to shift.
Author: Keisuke Sakurai
