With the Fed's rate hike in line with market expectations, is the U.S. dollar entering a correction phase?

With the Fed's rate hike in line with market expectations, is the U.S. dollar entering a correction phase?

17.03.2022

The U.S. dollar traded weakly yesterday, with the euro/dollar pair rising by about 100 pips from 1.094 to 1.105.Although the U.S. dollar has been rising against the yen, it has been trading weakly against other currencies, and the "flight to safety" trend of buying the dollar in times of crisis is fading. With geopolitical risks such as the situation in Ukraine still unresolved, market movements are increasingly reflecting acceptance of the status quo, so we should remain vigilant for a correction in the U.S. dollar.

Among European currencies, the euro has surged, with the EUR/JPY pair rising by approximately 189 pips from 129.50 to 131.46. Technically, the EUR/JPY pair continues to move within a range along the 10-period moving average on the 4-hour chart. If this upward trend persists, it could reach this year’s high of around 133.15; we will be watching price movements closely as we head into U.S. trading hours.

Today’s schedule includes remarks by ECB President Lagarde at 18:30 CET, the Eurozone Consumer Price Index at 19:00, the Turkish Central Bank’s policy rate and statement at 20:00, and the UK’s, and at 21:30 U.S. time, the Canadian House Price Index, U.S. Initial Jobless Claims, U.S. Housing Starts, and the U.S. Philadelphia Fed Business Outlook Index; at 22:15, U.S. Industrial Production and U.S. Capacity Utilization; and at 23:30, U.S. Weekly Natural Gas Inventories are scheduled for release.We will carefully assess whether the US dollar will enter a correction phase heading into the weekend.

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?