Keep an eye on currency strength and weakness ahead of the FOMC meeting
15.06.2022
- U.S. FOMC Policy Rate and Statement Release
- Press Conference by Federal Reserve Chair Powell
Yesterday, U.S. currencies rose on the back of a firm dollar index, and GBP/USD fell by approximately 270 pips from 1.2209 to 1.1931. The UK employment data released yesterday showed that the unemployment rate (ILO standard) worsened to 3.8%. The combination of the pound’s decline and the dollar’s rise led to a sharp drop.During today’s Asian session, the pair has been falling with the 20-period moving average acting as resistance, so we should remain cautious of further downside.
Among European currencies, the euro has held its ground against the U.S. dollar. While the GBP/USD pair fell nearly 300 pips, the EUR/USD traded within a narrow 80-pip range between 1.0396 and 1.0485. Since the EUR/USD has held above the 1.0396 support level on the 4-hour chart, we will be watching closely to see if it rebounds following today’s FOMC announcement.
Today’s schedule includes Swiss producer import prices at 3:30 p.m., the French consumer price index (final reading) at 3:45 p.m., Turkish housing prices at 4:00 p.m., and at 6:00 p.m., EurozoneEurozone Industrial Production and Trade Balance, at 6:15 PM: Remarks by Nagel, President of the German Bundesbank, at 8:00 PM: U.S. MBA Mortgage Applications Index, at 9:30 PM: U.S. Retail Sales,US: NY Fed Manufacturing Index; 10:00 PM: Canada: Existing Home Sales; 11:30 PM: US: Weekly Crude Oil Inventories; 1:20 AM: Eurozone: Remarks by ECB President Lagarde; 3:00 AM: US: FOMC Interest Rate Decision and Statement; 3:30 AM: US: Press Conference by Fed Chair Powell.We should pay close attention to the results of the FOMC meeting, which will be announced in the early morning.
Author: Keisuke Sakurai
