All eyes are on whether the U.S. dollar, which fell following the FOMC meeting, will recover

All eyes are on whether the U.S. dollar, which fell following the FOMC meeting, will recover

23.03.2023

In yesterday’s U.S. trading session, the U.S. dollar—which had seen its policy rate raised by 0.25% as expected by the market at the FOMC meeting—plummeted immediately after the announcement. The USD/JPY pair fell from 132.978 to 130.998.It has continued to decline during today’s Asian session, already touching 130.417. USD/JPY continues to fall, capped by the daily 200-day SMA, and the daily RSI has reversed near the 38 level. We will monitor the situation cautiously to see if the US dollar’s upside remains heavy heading into the weekend.

European currencies rose as the British pound gained against the U.S. dollar following the release of the UK’s February Consumer Price Index (CPI) yesterday, which came in at 10.4% year-on-year—exceeding both the previous reading and market expectations.GBP/USD rose from 1.2208 to 1.2333, hitting a new high for the month. It has continued to climb during today’s Asian trading session as well. Given the gains from yesterday and today, which are driving the pair toward the upper limit of its daily range at 1.2410, investors should remain vigilant regarding further gains against the US dollar.

Today, at 4:00 PM, the Turkish Consumer Confidence Index will be released; at 5:30 PM, the Swiss National Bank (SNB) will announce its policy rate and statement; at 8:00 PM, the Central Bank of the Republic of Turkey (TCMB) will announce its policy rate and statement; at 9:00 PM, the Bank of England (BOE) will announce its policy rate and statement, and the BOE minutes will be released;at 9:30 PM, U.S. Initial Jobless Claims, U.S. Q4 Current Account Balance, and the U.S. Chicago Fed National Activity Index; at 11:00 PM, U.S. New Home Sales; at 11:30 PM, U.S. Weekly Natural Gas Inventories; and at midnight, remarks by a member of the Bank of England’s MPC and the U.S. Kansas City Fed Manufacturing Activity Index.We will be watching closely to see if the US dollar, which fell following the FOMC meeting, will regain its footing.