All eyes are on whether the U.S. dollar can recover ahead of the FOMC meeting

All eyes are on whether the U.S. dollar can recover ahead of the FOMC meeting

21.03.2023

U.S. currencies weakened during U.S. trading hours yesterday, with the U.S. dollar declining. The USD/JPY pair fell by approximately 2 yen, from 132.627 to 130.539. It has entered a downtrend along the 20-period moving average (MA) on the hourly chart. On the higher-timeframe 4-hour chart, the pair is declining as it faces resistance at the 10-period MA.During today’s Asian session, the market has faced heavy selling pressure at lower levels and is attempting to rebound. Ahead of tomorrow’s FOMC meeting, we will be watching closely to see if the US dollar can recover and move higher.

European currencies rose against the U.S. dollar as the euro gained strength following remarks yesterday by ECB President Lagarde that "price stability and financial stability are compatible."The EUR/USD pair rose by approximately 100 pips from 1.0630 to 1.0730. It is extending its gains, supported on the downside by the daily 200-day EMA. Since the EUR/USD broke well above the 4-hour 200-day SMA following yesterday’s rally, it will be worth watching to see if further gains emerge after a correction.

Today, at 4:00 PM CET, Switzerland’s trade balance will be released, followed by Hong Kong’s overall balance at 5:30 PM,Poland’s retail sales at 18:00, Germany’s ZEW Economic Sentiment Survey and the Eurozone’s ZEW Economic Sentiment Survey at 19:00, followed by Canada’s Consumer Price Index at 21:30 U.S. time, remarks by ECB President Lagarde, U.S. existing home sales at 23:00, and a U.S. 20-year Treasury auction at 26:00.We will be closely monitoring price movements to see if the US dollar can recover on the eve of the FOMC meeting.

Past Market Reports

1. 21.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

2. 20.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

3. 17.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

4. 16.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

5. 15.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

6. 14.04.2026

   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

7. 13.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

8. 10.04.2026

   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?

9. 09.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

10. 08.04.2026

    Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran