All eyes are on the direction of the U.S. dollar as it recovers from its post-FOMC decline
19.12.2022
- M.I. 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 simple moving average (SMA) on the hourly chart provided support.In today’s Asian 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 whether the pair rises after a period of consolidation.
In the European session, the euro/pound pair, which had been rising against the pound, reversed course and fell. The euro/pound dropped 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, during European trading hours, the German IFO Business Climate Index will be released at 18:00, followed by Eurozone labor costs and Eurozone wages at 19:00, and the UKCBI Business Survey, and Israeli Manufacturing Production; during U.S. trading hours at 22:30, Canadian Industrial Production, the Canadian House Price Index, and the Canadian Raw Materials Price Index; at 24:00, 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
