Should we focus on the upward trend of the euro, which remains steady regardless of economic indicators?
22.03.2023
- U.S. FOMC Policy Rate and Statement Release
- Remarks by ECB President Lagarde
In yesterday’s U.S. currency trading, the U.S. dollar rose against the yen after February’s existing home sales came in at 4.58 million units, beating the market forecast of 4.1 million. The USD/JPY pair rose from 131.015 to 132.778, moving in line with the 20-period moving average on the hourly chart.Today, the market is awaiting the FOMC meeting in U.S. time, and the market consensus currently prices in a 0.25% rate hike. We will monitor the situation cautiously to see if the dollar remains firm should the scenario unfold as expected.
European currencies rose against the yen after Germany’s March ZEW Economic Sentiment Index, released yesterday, came in at 13.0—below the market forecast of 15.2.The EUR/JPY pair rose from 140.414 to 142.772, showing a rebound of more than 200 pips. On the hourly chart, EUR/JPY has broken above the 200-period SMA, and on the daily chart, while the highs are declining, the lows are rising. We will closely monitor whether this upward trend continues.
Today’s schedule includes the UK Consumer Price Index, UK Retail Sales, and UK Producer Price Index at 16:00 CET; remarks by ECB President Lagarde at 17:45 CET; the UK CBI Business Survey and the US MBA Mortgage Applications Index at 20:00 CET; and the US Weekly Crude Oil Inventories at 23:30 CET,at 2:00 AM, remarks by German Bundesbank President Nagel; at 3:00 AM, the release of the U.S. FOMC policy rate and statement; and at 3:30 AM, a press conference by U.S. Federal Reserve Chair Powell. We intend to carefully assess the upward trend of the euro, which is moving higher regardless of economic data results.
Author: Keisuke Sakurai
