Market participants may be on alert for fluctuations in the U.S. dollar following remarks by Federal Reserve Governor Bowman
18.04.2023
- Remarks by Bowman, Member of the Federal Reserve Board
- Euro ZEW Economic Sentiment Index
In yesterday's U.S. currency trading, the U.S. dollar emerged as the strongest currency after the April New York Fed Manufacturing Index, released yesterday, came in at 10.8—significantly exceeding market expectations of -18.1.The EUR/USD pair fell from 1.0916 to 1.0831. On the 4-hour chart, the pair found support at the 75-day moving average, halting its decline, and has rebounded slightly during today’s Asian session. We will closely monitor whether the euro continues to rebound heading into the European session.
Among European currencies, the pound fell against the U.S. dollar, which has emerged as the strongest currency. The GBP/USD pair dropped from 1.2437 to 1.2353. The decline halted when the price touched the -3σ line of the hourly Bollinger Bands. Since the GBP/USD pair is currently trading just below the 20-day moving average (MA) on the daily chart, we will be watching to see if the 20-day MA acts as support and triggers a rebound.
Today, at 3:00 PM Asia time, the UK Employment Report will be released, followed by the German ZEW Economic Sentiment Index, the Eurozone ZEW Economic Sentiment Index, and the Eurozone Trade Balance at 6:00 PM Europe time.at 20:30, the Turkish Housing Price Index; at 21:30 during U.S. trading hours, the Canadian Consumer Price Index, U.S. Housing Starts, and U.S. Building Permits; at 24:00, remarks by BOC Governor Macleem; and at 26:00, remarks by Fed Governor Bowman. We should be on the lookout for price fluctuations in the U.S. dollar following Fed Governor Bowman’s remarks during U.S. trading hours.
Author: Keisuke Sakurai
