Should We Be Wary of Volatility Following the FOMC Meeting?
16.03.2022
- U.S. FOMC Policy Rate and Statement Announcement
- U.S. Retail Sales
In yesterday’s U.S. currency trading, 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 U.S. dollar remained range-bound against the euro and Oceania currencies, with the AUD/USD pair rising slightly from 0.716 to 0.722.No significant price movements have been seen during today’s Asian trading session, with a wait-and-see mood prevailing ahead of the FOMC’s policy rate announcement.
European currencies are facing renewed upward pressure on the euro as Russia, which is approaching the interest payment deadline on its U.S. dollar-denominated government bonds, begins to face a risk of default. Although the euro/dollar pair initially rebounded, it has been unable to break above the upper boundary of the 20-day moving average on the daily chart, and given the challenging market conditions, 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 will be released at 20:00 European time, followed by the Turkish Housing Price Index at 20:30; then, at 21:30 U.S. time, the Canadian Consumer Price Index and Wholesale Sales, along with U.S. Retail Sales and the Import Price Index;at 23:00, the U.S. Business Inventories and NAHB Housing Market Index; at 23:30, U.S. Weekly Crude Oil Inventories; at 27:00, the FOMC policy rate decision and statement; and at 27:30, a press conference by Fed Chair Powell.I want to assess currency strength and weakness while focusing on today’s FOMC meeting.
Author: Keisuke Sakurai
