Will the market wait and see how the euro performs following the ECB’s decision to keep rates unchanged?
27.10.2023
- Canada: Fiscal Balance
- Remarks by U.S. Federal Reserve Vice Chair Bar
In yesterday’s U.S. currency trading, the dollar fell against the pound despite the significant improvement in U.S. third-quarter GDP data released yesterday, which showed personal consumption rising from the previous reading of 0.8% to 4.0%. The GBP/USD pair rebounded by approximately 70 pips from 1.2069 to 1.2138.It avoided hitting a new low for the month. Since GBP/USD has risen to just below the 20-period moving average (MA) on the 4-hour chart, we will be watching closely to see if the rebound momentum continues and the price breaks above the 20-MA with a real body.
Following yesterday’s announcement of the ECB’s policy rate, which was kept unchanged at 4.00–4.50% in line with market consensus, the euro traded in a narrow range against the yen.EUR/JPY traded without a clear direction between 157.999 and 158.897, with price action confined to small fluctuations around the 20-period moving average on the hourly chart. However, we remain cautious regarding the direction of the euro against the yen following the ECB announcement.
Today’s economic indicators include the French Consumer Confidence Index at 3:45 p.m., Thailand’s Foreign Exchange Reserves at 4:30 p.m., the Russian Central Bank’s Key Rate at 7:30 p.m., and the U.S. Trade Balance at 9:00 p.m.,Mexico’s trade balance at 21:30, U.S. personal income and the PCE deflator at 21:30, remarks by Fed Vice Chair Bar at 22:00, the University of Michigan Consumer Sentiment Index at 23:00, Canada’s fiscal balance at 24:00, and Brazil’s central bank balance sheet at 26:30.We will closely monitor the euro’s movements following the ECB’s decision to keep rates unchanged.
Author: Keisuke Sakurai
