Keep an eye on the GBP/USD price action as the daily RSI shows a downward trend
06.02.2024
- European Retail Sales
- Exclusive: New Orders in the Manufacturing Sector
In the previous day’s U.S. currency trading, Minneapolis Fed President Kashkari stated that “core inflation is making rapid progress toward the Fed’s target,” which seemed to accelerate expectations of an interest rate cut; however, the market reacted in the opposite direction, and the U.S. dollar rose.The euro fell against the dollar from 1.0786 to 1.0723. It broke below the daily 200-day EMA, which had been acting as support, with a real body candle.
Among European currencies, the pound was the weakest, with the GBP/USD pair falling for the second consecutive day. The GBP/USD fell from 1.2631 to 1.2518. On the daily chart, the pair fell continuously from the +2σ to the -3σ Bollinger Bands and stopped its decline upon touching the 200-day EMA. On the weekly chart, the pair has failed to make a new high and is trending lower, so investors should watch for further weakness in the pound.
Today’s schedule includes UK existing store sales at 9:00, Australian retail sales at 9:30, the Philippine Consumer Price Index at 10:00, the RBA policy rate and statement at 12:30, German new manufacturing orders at 16:00, the Taiwan Consumer Price Index at 17:00, and UKConstruction PMI, 7:00 PM for Eurozone Retail Sales, 10:30 PM for Canada Housing Starts, 12:00 AM for Canada Ivey PMI, 2:00 AM for US remarks by Mester, President of the Cleveland Fed, and 3:00 AM for the US 3-year Treasury auction. We will be closely monitoring the price action of GBP/USD, as the daily RSI is showing a downward trend.
Author: Keisuke Sakurai
