Will the release of the FOMC minutes shift the balance of power in the currency markets?
12.04.2023
- U.S. Daily: Remarks by the President of the San Francisco Federal Reserve Bank
- Release of the FOMC Minutes
In the previous day’s U.S. currency trading, the dollar fell against the euro as expectations of a pause in rate hikes grew following remarks by Philadelphia Fed President Harker, who stated, “I support raising the federal funds rate above 5% and keeping it there for a while.”The EUR/USD pair rose from 1.0856 to 1.0926. Although it had been trading below the 200-period simple moving average (SMA) on the hourly chart, it has now moved back above it. On the 4-hour chart, the 75-period SMA is acting as support, so we will be watching closely to see if the pair extends its gains during U.S. trading hours.
Ahead of today’s remarks by BOE Governor Bailey, the pound rose against the yen. The GBP/JPY pair climbed from 165.180 to 166.575, hitting a new high for the year. Technically, GBP/JPY is currently at the upper boundary of its daily uptrend line and is attempting to break above it. We will be watching closely to see if further gains are in store following the release of U.S. economic indicators and remarks by key officials during U.S. trading hours.
Today’s economic indicators include the U.S. MBA Mortgage Applications Index at 8:00 PM, the U.S. Consumer Price Index at 9:30 PM, remarks by Bank of England Governor Bailey and U.S. Richmond Fed President Barkin at 10:00 PM, the Bank of Canada’s policy rate decision and statement at 11:00 PM, U.S. weekly crude oil inventories at 11:30 PM,at 12:00 AM, a press conference by BOC Governor Macklem; at 1:00 AM, remarks by San Francisco Fed President Daly; at 2:00 AM, a U.S. 10-year Treasury auction; and at 3:00 AM, the release of the FOMC minutes. We will be closely monitoring whether the release of the FOMC minutes brings about any changes in the currency landscape.
Author: Keisuke Sakurai
