All eyes are on whether the U.S. dollar will weaken following the Beige Book report

All eyes are on whether the U.S. dollar will weaken following the Beige Book release

19.04.2023

In the U.S. currency market yesterday, the U.S. dollar became the weakest currency after the March housing starts and building permits data, released yesterday, both came in below the previous month’s figures. The USD/JPY pair fell to the 134.705–133.863 range.The decline halted just short of the 75-period moving average (MA) on the hourly chart. However, on the higher-timeframe 4-hour chart, USD/JPY has firmly broken above the 200-period SMA, and since the upward trend on the daily chart remains intact, traders should pay close attention to economic data releases during U.S. trading hours.

European currencies saw the euro trade in a narrow range against the yen ahead of today’s consumer price index (CPI) release. The euro/yen pair traded between 146.731 and 147.388, with prices trending higher during today’s Asian session. Following last week’s rally, the euro/yen pair has significantly surpassed this year’s high, and the market has returned to a yen-weakening trend. We will be closely monitoring whether the euro strengthens against the yen following the CPI release.

Today, at 3:00 PM, the UK Consumer Price Index, UK Retail Price Index, and UK Producer Price Index will be released; at 4:00 PM, the Turkish Consumer Confidence Index and remarks by SNB Board Member Mecheler of Switzerland; at 5:00 PM, the Eurozone Current Account;at 6:00 PM, the Eurozone Construction Output and Eurozone Consumer Price Index; at 8:00 PM, the US MBA Mortgage Applications Index; at 9:15 PM, Canadian Housing Starts; at 9:30 PM, Canadian Industrial Product Prices; at 11:30 PM, US Weekly Crude Oil Inventories; and at 3:00 AM, the US Federal Reserve Regional Economic Reports.We want to carefully assess the direction of the market to see if the US dollar will weaken following the Beige Book.