Should investors be wary of volatility following the FOMC meeting?

Should investors be wary of volatility following the FOMC meeting?

16.03.2022

In yesterday’s U.S. currency markets, the U.S. dollar was the only major currency to rise against the yen, with the USD/JPY pair touching a year-to-date high of 118.44. However, the dollar remained range-bound against the euro and the Australian dollar, with the AUD/USD pair rising slightly from 0.716 to 0.722. There has been little price movement during today’s Asian trading session, as the market adopts a wait-and-see stance ahead of the FOMC’s interest rate announcement.

European currencies are facing renewed upward pressure as Russia, which is approaching the interest payment deadline on its U.S. dollar-denominated bonds, begins to face default risks. Although the euro/dollar pair initially rebounded, it has been unable to break above the upper limit of the 20-day moving average, leading to a challenging market environment; therefore, it would be prudent to wait and see how prices develop until the FOMC meeting early this morning.

Today, the U.S. MBA Mortgage Applications Index is scheduled for 8:00 p.m. CET, followed by the Turkish Housing Price Index at 8:30 p.m. CET. During U.S. trading hours, the Canadian Consumer Price Index and Wholesale Sales will be released at 9:30 p.m. ET, along with U.S. Retail Sales and the Import Price Index. At 11:00 p.m. ET, the U.S. Business Inventories and the NAHB Housing Market Index will be released, followed by U.S. Weekly Crude Oil Inventories at 11:30 p.m. ET.at 03:00, the U.S. FOMC interest rate decision and statement will be released, and at 03:30, a press conference with Fed Chair Powell is scheduled. I plan to focus on today’s FOMC meeting while assessing currency strength and weakness.

Past Market Reports

1. 22.04.2026New

   Will interest grow in the upside potential of the Swiss franc, which has risen against the yen?

2. 21.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

3. 20.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

4. 17.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

5. 16.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

6. 15.04.2026

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

7. 14.04.2026

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

8. 13.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

9. 10.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

10. 09.04.2026

    Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?