All eyes are on whether the U.S. dollar will fluctuate in response to the University of Michigan Consumer Sentiment Index.
10.11.2023
- Remarks by ECB President Lagarde
- University of Michigan Consumer Sentiment Index
In U.S. currency markets yesterday, the U.S. dollar became the strongest currency during U.S. trading hours following remarks by Federal Reserve Chair Powell that “we will not hesitate to tighten further if necessary” and that “while the labor market remains tight, the balance is improving.”The EUR/USD pair fell from 1.0725 to 1.10660. The decline halted upon touching the 200-period EMA on the hourly chart. We will be watching closely to see if the U.S. dollar maintains its strength during today’s U.S. trading hours, while also monitoring economic data releases.
European currencies saw the pound fall against the yen yesterday, despite remarks by UK MPC member Pill that “we need to maintain monetary tightening to bring inflation down.” The GBP/JPY pair fell from 185.871 to 184.817.It broke below the 20-period moving average (MA) on the 4-hour chart. However, on the higher-time-frame daily chart, GBP/JPY remains above the 10-period MA, so traders should pay close attention to any volatility caused by the release of UK economic indicators during today’s Asian trading session.
Today, at 4:00 p.m., UK GDP, UK industrial production, UK trade balance,Norway’s Consumer Price Index, Turkey’s employment data, and Turkey’s industrial production at 4:00 PM; Hungary’s Consumer Price Index at 4:30 PM; the Czech Republic’s Consumer Price Index at 5:00 PM; Hong Kong’s GDP at 5:30 PM; Mexico’s industrial production and India’sIndustrial Production, at 21:30: Remarks by ECB President Lagarde and U.S. Dallas Fed President Logan, at 23:00: Remarks by U.S. Atlanta Fed President Bostic, and at 24:00: the U.S. University of Michigan Consumer Sentiment Index.We’ll be watching to see if the U.S. dollar reacts to the University of Michigan Consumer Sentiment Index and what direction it takes.
Author: Keisuke Sakurai
