All eyes are on whether the U.S. dollar will maintain its strength ahead of the FOMC meeting early next month
17.10.2022
- Bank of America Earnings Report
- U.S. New York Fed Manufacturing Index
Last weekend, the U.S. dollar emerged as the strongest currency during U.S. trading hours after the University of Michigan’s October Consumer Sentiment Index came in at 59.8, beating market expectations of 58.9. The USD/JPY pair rose by just under 2 yen, from 146.839 to 148.859.It closed at a level not seen in 32 years. During today’s Asian trading session, USD/JPY is attempting to rise, and the downside is becoming heavy. USD/JPY is currently trading around 148.610, supported by the 10-period moving average on the hourly chart. We will carefully monitor whether an upward move will occur during U.S. trading hours.
Among European currencies, the euro held its ground against the rising U.S. dollar, with the EUR/USD pair trading in a range of 100 pips between 0.9707 and 0.9808.There has been no significant price movement during Asian trading hours at the start of the week, with the pair trading within a 15-pip range. Since the EUR/USD has stalled at the 61.8% Fibonacci retracement level following its rise two weeks ago, we will be watching closely to see if this range-bound market continues for some time.
Today, at 15:00 Asia time, Norway’s trade balance will be released; at 17:00 Europe time, Turkey’s fiscal balance; at 21:00 U.S. time, Brazil’s IBC-BR Economic Activity Index and the Philippines’ Consumer Price Index;at 21:30, the U.S. NY Fed Manufacturing Index; at 24:30, U.S. 3-month and 6-month Treasury auctions; at 28:00, remarks by German Bundesbank President Nagel; and at 29:00, remarks by Canadian Senior Deputy Governor Rogers.We will be closely monitoring whether the U.S. dollar maintains its strength as the market digests last weekend’s U.S. CPI release, ahead of the FOMC meeting early next month.
Author: Keisuke Sakurai
