Market participants may be on alert for fluctuations in the U.S. dollar caused by remarks from Federal Reserve Governor Bowman (U.S. time)

Market participants may be on alert for fluctuations in the U.S. dollar caused by remarks from Federal Reserve Governor Bowman (U.S. time)

18.04.2023

In the U.S. currency market yesterday, 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-period moving average (MA) and halted its decline; it has rebounded slightly during today’s Asian trading session. We will be watching closely to see if 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 fell from 1.2437 to 1.2353. The decline halted when the price touched the -3σ level of the hourly Bollinger Bands.Since the GBP/USD pair is 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, or if the pair continues in its current direction.

Today’s schedule includes the UK Employment Report at 15:00 (Asia time); the German ZEW Economic Sentiment Index, the Eurozone ZEW Economic Sentiment Index, and the Eurozone Trade Balance at 18:00 (Europe time); the Turkish Housing Price Index at 20:30; the Canadian Consumer Price Index at 21:30 (U.S. time);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.