Investors should be on alert for increased volatility following the release of economic indicators in the U.S.

Investors should be on alert for increased volatility following the release of economic indicators in the U.S.

06.01.2023

The U.S. dollar emerged as the strongest currency the previous day, driven by strong U.S. economic data releases.Yesterday, Kansas City Fed President George stated in a CNBC interview that "the Fed should maintain the policy rate above 5% even into 2024," dampening excessive expectations for rate cuts. This contributed to the GBP/USD pair falling 200 pips from 1.2076 to 1.1873.

European currencies weakened as the euro lost ground following yesterday’s release of the Eurozone’s November Producer Price Index (PPI), which came in at 27.1% year-over-year—below the market forecast of 27.6%. While the USD/JPY rose, the EUR/JPY traded in a range between 139.975 and 141.362, and the direction remains unclear during today’s Asian trading session.EUR/JPY is trading just below the 4-hour 75-MA, which could act as resistance, so traders should be cautious of further downside potential.

Today’s schedule includes German manufacturing orders and UK Halifax house prices at 4:00 PM, Swiss retail sales at 4:30 PM, the Eurozone Consumer Price Index at 7:00 PM, and Canadian and U.S. employment reports at 10:30 PM,at 12:00 AM: Canada’s Ivey PMI and the U.S. ISM Non-Manufacturing PMI; at 1:15 AM: remarks by U.S. Federal Reserve Governor Cook and Atlanta Fed President Bostic; at 2:15 AM: remarks by U.S. Richmond Fed President Barkin; and at 3:00 AM: remarks by U.S. Kansas City Fed President George.We should be on guard for a sharp spike in volatility following the release of these indicators during U.S. trading hours.

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?