Should We Keep an Eye on the Pound, Which Is Gaining Ground?
06.03.2024
- Canada: BOC Policy Rate and Statement Release
- U.S. ADP Employment Figures
In U.S. currency trading yesterday, the U.S. dollar fell during U.S. trading hours following the release of U.S. January manufacturing orders, which showed a sharp decline from the previous month’s 0.2% to -3.6%. The USD/JPY pair fell from 150.545 to 149.698.Since the start of this week, dark clouds have been gathering over the prospect of breaking through the mid-150 yen range. From a technical perspective, since USD/JPY is trading just below the 20-day moving average (MA) on the daily chart, we will be closely watching to see if comments from key officials during U.S. trading hours cause the price to move.
European currencies saw the pound rise against the U.S. dollar, despite the UK’s February services PMI—released yesterday—falling to 53.8 from 54.3 the previous month. The GBP/USD pair rose to between 1.2670 and 1.2734, with the rally tracking the 10-period moving average (MA) on the 4-hour chart.On the daily chart, GBP/USD is finding support at the 75-day moving average, and its lows are rising; therefore, we should watch for further gains during European trading hours.
Today’s schedule includes South Korea’s Consumer Price Index at 8:00, Australia’s Real GDP at 9:30, and Germany’strade balance, at 18:30 UK Construction PMI, at 19:00 Eurozone retail sales, at 21:00 US MBA Mortgage Applications Index and Brazil’s industrial production, at 22:15 US ADP Employment Report, at 22:30 Canada’s labor productivity,at 23:45: Canada’s BOC policy rate and statement; at 24:00: Canada’s Ivey PMI, U.S. wholesale inventories, U.S. JOLTS job openings, and Fed Chair Powell’s congressional testimony; and at 28:00: the U.S. Federal Reserve Bank Regional Economic Reports.We will closely monitor the movements of the pound, which has been gaining ground.
Author: Keisuke Sakurai
