Will the U.S. dollar react to Fed Chair Powell’s remarks? Caution is advised.

Will the U.S. dollar react to Fed Chair Powell’s remarks? Caution is advised.

10.01.2023

In the previous session, the U.S. dollar became the weakest currency during U.S. trading hours, and the EUR/USD pair rose by approximately 120 pips from 1.0636 to 1.0760.EUR/USD continues its upward trend along the 20-period moving average (MA) on the hourly chart and has broken above the recent high of 1.0736 on the 4-hour chart. On the higher time frames—the daily and weekly charts—the RSI remains just below 70, indicating room for further gains, so we should watch for a decline in the US dollar during US trading hours.

Despite the fact that Germany’s November industrial production, released yesterday, came in at -0.4% year-on-year—falling short of the market forecast of 0.1%—the euro remained firm against the Australian dollar. The EUR/AUD pair rose from 1.53885 to 1.5537, recovering to just below the 20-period moving average on the 4-hour chart.On the daily chart, the 75-day moving average is acting as support, so we will be watching closely to see if the euro’s recent rebound continues.

Today, at 16:00 CET, Turkey’s unemployment rate and industrial production will be released; at 16:45, France’s industrial production and manufacturing production index will be released; and at 18:30, the UK’sremarks by BOE Governor Bailey and remarks by BOC Governor Maclean, South African Manufacturing Production and the U.S. NFIB Small Business Optimism Index at 20:00, remarks by Fed Chair Powell at 23:00 U.S. time, U.S. Wholesale Inventories at 24:00, and a U.S. 3-year Treasury auction at 27:00.We will closely monitor whether Fed Chair Powell’s remarks cause the U.S. dollar to move.

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?