Should we keep a close eye on the U.S. dollar’s movements during FOMC Week?

Should we keep a close eye on the U.S. dollar’s movements during FOMC Week?

19.09.2022

Last weekend, the U.S. dollar retreated as the Dollar Index edged lower to around 109.8. The EUR/USD pair rose by 90 pips from 0.9944 to 1.0035 and is currently trading just below the 20-period moving average on the 4-hour chart. On longer-term timeframes such as the daily chart, the EUR/USD has not yet broken out of its downtrend, and no reversal signals have emerged.We will be watching closely to see if the direction changes at this week’s FOMC meeting.

European currencies came under pressure from the strength of the Oceania currencies, causing the pound to fall. The GBP/AUD pair dropped by approximately 160 pips from 1.7135 to 1.6975. The price action saw the pair fall back below the daily 20-day moving average (MA) that it had previously broken above. Since the GBP/AUD pair closed last week with a bearish candle featuring an upper shadow following the decline over the weekend, we will be watching closely to see if a downward move occurs heading into the weekend.

No major economic indicators are scheduled for release during European trading hours today. However, once U.S. trading begins, the Canadian Industrial Product Prices and Canadian Raw Materials Price Index are set for release at 9:30 p.m., followed by the U.S. NAHB Housing Market Index at 11:00 p.m.This week is packed with major events, including the release of Japanese and Canadian CPI data on the 20th, the U.S. FOMC policy rate announcement on the 21st, and policy rate announcements from the UK, Japan, and Switzerland on the 22nd. We will be closely monitoring the direction of the U.S. dollar ahead of the FOMC meeting.

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 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?