Will the market wait and see how the euro moves 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 U.S. currency trading yesterday, the U.S. dollar fell against the pound despite the fact that the U.S. third-quarter GDP figures released yesterday showed a significant improvement in personal consumption, rising from the previous reading of 0.8% to 4.0%. The GBP/USD pair rebounded by about 70 pips from 1.2069 to 1.2138.This prevented the pair from 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 pair breaks above the 20-MA with a real body candle.
Following yesterday’s announcement of the ECB’s policy rate—which, as expected by the market, was held steady at 4.00–4.50%—the euro traded in a narrow range against the yen.The EUR/JPY pair 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 should 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 15:45, Thailand’s Foreign Exchange Reserves at 16:30, the Russian Central Bank’s Key Interest Rate at 19:30, the U.S. Trade Balance at 21:00,Mexico’s trade balance at 21:30, U.S. personal income and the PCE deflator at 21:30, remarks by U.S. Federal Reserve Vice Chair Bar at 22:00, the University of Michigan Consumer Sentiment Index at 23:00, Canada’s fiscal balance at 24:00,and at 26:30, Brazil’s Central Bank Balance of Payments. We will be closely monitoring the euro’s movements following the ECB’s decision to keep rates unchanged.
Author: Keisuke Sakurai
