All eyes are on the direction of the U.S. dollar as it recovers from its post-FOMC decline
19.12.2022
- U.S. NAHB Housing Market Index
- Manufacturing and Mining Production
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 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 interesting to see if the pair rises after a period of consolidation.
Among European currencies, the euro/pound, which had been rising against the pound, pulled back. The euro/pound fell approximately 70 pips from 0.8772 to 0.8703. The pullback occurred after the pair broke below the 20-period moving average (MA) on the hourly chart. On the higher-time-frame 4-hour chart, the 10-period MA is acting as support, and the pair is rebounding.During today’s Asian session, the pair has rebounded along the 10-period MA on the 4-hour chart, so we will be watching closely to see if this rebound continues into the European session.
Today’s schedule includes the German IFO Business Climate Index at 18:00 European time, European labor costs and Eurozone wages at 19:00, the UK CBI Business Survey and Israeli manufacturing output at 20:00, and during U.S. trading hours, the CanadianIndustrial Production, the Canadian Housing Price Index, and the Canadian Raw Materials Price Index; at 24:00 during U.S. trading hours, the U.S. NAHB Housing Market Index; at 25:30, the U.S. 6-Month Treasury Bill Auction; and at 6:45 the following day, New Zealand’s Trade Balance. We will be watching the direction of the U.S. dollar as it recovers from the decline following the FOMC meeting.
Author: Keisuke Sakurai
