Will the release of the FOMC minutes trigger price movements? All eyes are on the direction of the U.S. dollar.
23.11.2022
- Release of U.S. FOMC Minutes (November 1–2)
- University of Michigan Consumer Sentiment Index
In the U.S. currency market yesterday, the USD/JPY pair fell as the Dollar Index dropped to 107.1. The USD/JPY fell by approximately 130 pips, from 142.240 to 140.906.Although a slight rebound has been seen during today’s Asian session, trading range remains limited ahead of the U.S. Thanksgiving holiday on the 24th. However, with the release of the FOMC minutes scheduled for today, we will be watching to see if the pair breaks above the daily 20-day moving average and returns to an uptrend.
The euro saw a seesaw trade against the yen after yesterday’s release of the Eurozone’s September current account balance, which narrowed from the previous reading of -26.3 billion euros to -8.1 billion euros. The euro/yen pair rose from 144.879 to 145.708.It is attempting to rise again during today’s Asian trading session and is currently trading around 145.934. Since it has already broken above the upper boundary of the downtrend line on the 4-hour chart, we will be watching closely to see if it continues to rise heading into European trading hours.
Today, at 17:15, the French Manufacturing/Services PMI; at 17:30, the German Manufacturing/Services PMI; at 18:00, the Eurozone Manufacturing/Services PMI; and at 18:30, the UKManufacturing/Services PMI, at 21:00 the U.S. MBA Mortgage Applications Index, at 22:30 U.S. Initial Jobless Claims and U.S. Durable Goods Orders, at 23:45 the U.S. Manufacturing/Services PMI, at 24:00: U.S. New Home Sales and University of Michigan Consumer Sentiment Index, at 24:30: Remarks by MPC Member Pill (UK) and U.S. Weekly Crude Oil Inventories, and at 28:00: Release of the U.S. FOMC Minutes.We will be closely monitoring the direction of the U.S. dollar to see if the release of the FOMC minutes triggers any price movements.
Author: Keisuke Sakurai
