Investors should pay close attention to Fed Chair Powell’s remarks at the FOMC meeting
21.09.2022
- U.S. FOMC Policy Rate and Statement Release
- U.S. Federal Reserve Releases Economic and Interest Rate Forecasts
In yesterday’s U.S. trading session, the U.S. dollar emerged as the strongest currency, causing GBP/USD to drop 100 pips from 1.1459 to 1.1357. Although GBP/USD remains in a downtrend on the daily chart, with the 20-day moving average acting as resistance, the daily RSI has fallen below 30, indicating a divergence. Therefore, we will need to carefully assess whether the pound will strengthen against the dollar during today’s FOMC meeting.
European currencies fell against the yen after yesterday’s data showed that the eurozone’s current account balance for July plummeted from the previous month to a deficit of €19.9 billion. The euro/yen pair dropped by just under 100 pips, from 144.021 to 143.052. It is currently forming a triple top just below the 20-period moving average on the 4-hour chart. We will closely monitor whether the yen weakens again during today’s U.S. trading hours.
Today, at 17:00 CET, South Africa’s Consumer Price Index will be released, followed by the UK’sCBI Business Survey at 19:00, and the U.S. MBA Mortgage Applications Index at 20:00. During U.S. trading hours, the U.S. Existing Home Sales are scheduled for 23:00, U.S. Weekly Crude Oil Inventories for 23:30, the FOMC policy rate decision and statement for 27:00, the release of the Fed’s economic and interest rate projections for 27:00, and a press conference by Fed Chair Powell for 27:30.We should pay close attention to Fed Chair Powell’s remarks at the FOMC meeting.
Author: Keisuke Sakurai
