Should We Pay Attention to Fed Chair Powell’s Remarks at the FOMC?

Should We Pay Attention to Fed Chair Powell’s Remarks at the FOMC?

21.09.2022

In the previous day’s U.S. currency trading, the U.S. dollar emerged as the strongest currency during U.S. trading hours, and the GBP/USD pair fell 100 pips from 1.1459 to 1.1357.Although the GBP/USD pair continues to follow a downtrend capped by the 20-day moving average on the daily chart, the daily RSI has broken below 30, indicating a divergence. Therefore, we need to carefully assess whether the pound will strengthen against the U.S. 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 dropped significantly from the previous month to a deficit of 19.9 billion euros. The euro/yen pair fell by just under 100 pips, from 144.021 to 143.052. It is forming a triple top just below the 20-period moving average on the 4-hour chart.We will carefully monitor whether the yen weakens again during today’s U.S. trading hours.

Today’s schedule includes the South African Consumer Price Index at 17:00 European time, the UK CBI Business Survey at 19:00, and the U.S. MBA Mortgage Applications Index at 20:00; followed by U.S. Existing Home Sales at 23:00 U.S. time, U.S. Weekly Crude Oil Inventories at 23:30,at 27:00, the U.S. FOMC policy rate decision and statement, along with the Fed’s economic and interest rate projections, and at 27:30, a press conference by Fed Chair Powell. We should pay close attention to Fed Chair Powell’s remarks at the FOMC meeting.