All eyes are on the direction of the U.S. dollar as it recovers from its post-FOMC decline

All eyes are on the direction of the U.S. dollar as it recovers from its post-FOMC decline

19.12.2022

Last weekend, the U.S. dollar strengthened against both the yen and the euro. The EUR/USD pair fell from 1.0660 to 1.0581. The decline halted as the 200-period simple moving average (SMA) on the hourly chart provided support.During today’s Asian trading session, the EUR/USD pair has rebounded and is trading around 1.0605. On the daily chart, the 10-day moving average (MA) is acting as a support level, so it will be worth watching to see if the pair rises after a period of consolidation.

Among European currencies, the euro/pound pair, which had been rising against the pound, reversed course. The euro/pound fell by approximately 70 pips from 0.8772 to 0.8703. The decline came after the pair broke below the 20-period moving average (MA) on the hourly chart. On the higher-timeframe 4-hour chart, the pair is rebounding as the 10-period MA acts as support. Since the pair has been rebounding along the 10-period MA on the 4-hour chart during today’s Asian session, we will be watching closely to see if this rebound continues into the European session.

Today, at 18:00 CET, the German IFO Business Climate Index will be released; at 19:00 CET, European labor costs and Eurozone wages will be released; and at 20:00 CET, the UKCBI Business Survey, and Israeli Manufacturing Production at 18:00 CET, followed by Canadian Industrial Production, the Canadian Housing Price Index, and the Canadian Raw Materials Price Index at 22:30 EST, the U.S. NAHB Housing Market Index at 24:00 EST, the U.S. 6-Month Treasury Bill Auction at 25:30 EST, and the New Zealand Trade Balance at 6:45 the following day. We will be watching the direction of the U.S. dollar as it recovers from the post-FOMC decline.

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?