Be on high alert for sharp fluctuations in currency strength following the U.S. policy rate announcement

Be on high alert for sharp fluctuations in currency strength following the U.S. policy rate announcement

01.02.2023

In yesterday’s U.S. currency trading, the U.S. dollar weakened against the euro, causing the EUR/USD pair to rise. The EUR/USD rebounded from 1.0802 to 1.0874, climbing just below the 200-period simple moving average (SMA) on the hourly chart. On the 4-hour chart, the EUR/USD has stalled as its upside is capped by the 20-period moving average (MA). We will be watching to see if the euro’s upward momentum continues following today’s FOMC meeting.

Among European currencies, the Swiss franc emerged as the strongest, with the CHF/JPY pair rising nearly 2 yen from 140.375 to 142.233.Following yesterday’s rise, the CHF/JPY pair has completely broken above the daily 20-day moving average (MA) with a real body, and the daily RSI has shifted to an upward trend. However, since it remains below the 20-day MA on the weekly chart, we need to carefully assess the direction to see if a pullback will occur during today’s U.S. trading hours.

Today’s economic indicators include the UK Nationwide House Price Index at 4:00 PM, the Swiss Manufacturing PMI at 5:30 PM, the UK Manufacturing PMI at 6:30 PM, the Eurozone Consumer Price Index at 7:00 PM, the US MBA Mortgage Applications Index at 9:00 PM, the US ADP National Employment Report at 10:15 PM,at 12:00 AM: US ISM Manufacturing PMI and US JOLTS Job Openings, at 12:30 AM: US Weekly Crude Oil Inventories, at 4:00 AM: US FOMC Interest Rate Decision and Statement, and at 4:30 AM: US Federal Reserve Chair Powell’s Press Conference. We must remain highly vigilant for periods of extreme volatility in currency strength following the US interest rate announcement.

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?