U.S. Williams: Caution Over NY Fed President's Remarks?
31.03.2022
- Williams (U.S.): Remarks by the President of the New York Fed
- Chicago Purchasing Managers' Index
The U.S. dollar weakened against the yen yesterday, with the USD/JPY pair falling by about 180 pips from 123.21 to 121.30. This sharp decline during the morning hours was driven by speculation that a meeting between Bank of Japan Governor Kuroda and Prime Minister Kishida might lead to measures to curb yen weakness. However, during today’s Asian trading session, the USD/JPY pair has rebounded to around 122.33.
In the European currency market, the euro was bought back on hopes of a de-escalation in the Ukraine crisis, causing the EUR/JPY pair to rise by about 2 yen from 134.85 to 136.85. The pair rebounded without falling below the 20-period moving average on the 4-hour chart and has returned to a bullish trend. However, since the RSI on the 4-hour chart is at a high level of 70, we should exercise caution in assessing whether the upward trend will continue.
Today, at 3:00 PM CET, the UK will release its fourth-quarter GDP (final reading) and Nationwide house prices, followed by German retail sales. At 3:45 PM CET, France will release its producer price index, and at 4:55 PM CET, Germany will releaseunemployment rate at 16:55, U.S. Challenger layoff forecast at 20:30, followed by Canadian GDP, U.S. initial jobless claims, and U.S. personal income at 21:30 U.S. time, remarks by U.S. Federal Reserve Bank of New York President Williams at 22:00, and the U.S. Chicago PMI at 22:45. We should remain vigilant regarding the economic indicators and key speeches scheduled for the U.S. session.
Author: Keisuke Sakurai
