Markets may be watching the U.S. dollar’s movements following the FOMC minutes, which revealed a number of hawkish officials

Markets may be watching the U.S. dollar’s movements following the FOMC minutes, which revealed a number of hawkish officials

23.02.2023

In the previous day’s U.S. currency markets, the U.S. dollar rose against the euro following the release of the FOMC minutes, which revealed a majority of hawkish officials.The EUR/USD pair fell from 1.0663 to 1.0599, hitting a new low for the month. From a technical perspective, the daily RSI is trending downward, and the pair has fallen below the 23.6% Fibonacci retracement level. We will be watching closely to see if it continues to decline toward the 38.2% line at 1.0469.

Among European currencies, the pound—which had risen by more than 2 yen the previous day following the PMI release—fell back by about 1.3 yen. The GBP/JPY pair dropped from 163.752 to 162.203. The decline halted as the pair found support at the 75-period moving average on the hourly chart.On the 4-hour chart, the pair is positioned just below the 20-MA. However, it has already touched the upper boundary of the daily uptrend line, and a pullback is possible; therefore, traders should be cautious of a decline during European trading hours.

Today’s economic indicators include remarks by a member of the Bank of England’s Monetary Policy Committee (MPC) at 6:30 p.m., the Eurozone Consumer Price Index at 7:00 p.m., remarks by Bank of England Deputy Governor Kanliff at 7:45 p.m., the Central Bank of the Republic of Turkey (TCMB) policy rate and statement at 8:00 p.m., U.S. initial jobless claims, U.S. fourth-quarter GDP, and the U.S. core PCE deflator at 10:30 p.m.,U.S. Chicago Fed National Activity Index, U.S. weekly natural gas inventories at 12:30 a.m., remarks by U.S. Atlanta Fed President Bostic at 12:50 a.m., U.S. weekly crude oil inventories at 1:00 a.m., U.S. 7-year Treasury auction at 3:00 a.m., and remarks by U.S. San Francisco Fed President Daly at 4:00 a.m.We will be closely monitoring the movement of the U.S. dollar, as the FOMC minutes revealed a number of hawkish officials.