Will the U.S. dollar establish a clear direction at the FOMC meeting, or will it remain on the sidelines?

Will the U.S. dollar establish a clear direction at the FOMC meeting, or will it remain on the sidelines?

14.12.2022

In the U.S. currency market yesterday, the U.S. dollar fell after the U.S. November Consumer Price Index, released yesterday, dropped significantly from 7.7% the previous month to 7.1%. The EUR/USD pair rose by approximately 140 pips from 1.0527 to 1.0673, reaching its highest level since June 9 of this year.From a technical perspective, the EUR/USD pair has broken above the 200-day simple moving average (SMA) on the daily chart and is currently rising with support from the 10-day moving average (MA). It will be worth watching whether the pair enters an uptrend following a period of consolidation.

European currencies saw the EUR/GBP pair, which had been trading lower following yesterday’s release of Germany’s December ZEW Economic Sentiment Survey—which came in at -23.3 versus market expectations of -27.0—enter a seesawing pattern. The EUR/GBP fell to 0.8560 before rising to 0.8605.It continued to rise during today’s Asian session, touching 0.8615. On the daily chart, the 200-day SMA is acting as support, so we will be watching closely to see if a rebound occurs.

Today’s economic indicators include the UK Consumer Price Index and UK Retail Sales at 4:00 PM, Swiss Producer Import Prices at 4:30 PM, South African Consumer Price Index at 5:00 PM, EurozoneIndustrial Production, at 21:00 the US MBA Mortgage Applications Index, at 22:30 Canadian Manufacturing Shipments and the US Import Price Index, at 24:30 US Weekly Crude Oil Inventories, at 28:00 the US FOMC policy rate decision and statement release, and at 28:30 a press conference by US Federal Reserve Chair Powell.I intend to watch carefully to see if the FOMC will provide a clear direction for the U.S. dollar.

Past Market Reports

1. 21.04.2026New

   Will interest grow in the upside potential of the Swiss franc, which has risen against the yen?

2. 20.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

3. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

4. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

5. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

6. 14.04.2026

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

7. 13.04.2026

   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. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

9. 09.04.2026

   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. 08.04.2026

    Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?