All eyes are on whether the U.S. dollar will see significant movement following the release of the FOMC minutes

All eyes are on whether the U.S. dollar will see significant movement following the release of the FOMC minutes

24.05.2023

In the U.S. currency market the previous day, the U.S. dollar fluctuated against the yen after the Richmond Fed’s May Manufacturing Index, released yesterday, came in at -15—worse than the market forecast of -9.USD/JPY traded within a range of 138.910 to 138.229, showing a lack of direction as it fluctuated around the 20-period moving average on the hourly chart. From a technical perspective, the RSI on the 4-hour chart is showing divergence, so traders should be wary of a pullback during European trading hours.

European currencies saw the euro fall slightly against the U.S. dollar after mixed results were released yesterday for Germany’s May manufacturing and services PMIs. The euro/dollar pair fell from 1.0819 to 1.0760, trading just below the weekly 20-day moving average.From a technical perspective, the EUR/USD pair is showing signs of divergence on the 4-hour chart as the RSI has touched the 30 level, so we will be watching for a potential rebound in the euro during U.S. trading hours.

Today, at 3:00 p.m., the UK Consumer Price Index, UK Retail Price Index, and UK Producer Price Index will be released; at 4:00 p.m., Turkey’s Capacity Utilization Rate; and at 5:00 p.m., Germany’sIFO Business Climate Index, at 6:30 p.m. a speech by Bank of England Governor Bailey, at 8:00 p.m. the U.S. MBA Mortgage Applications Index, at 11:05 p.m. a speech by U.S. Treasury Secretary Yellen, at 11:30 p.m. U.S. weekly crude oil inventories,25:10: Remarks by U.S. Federal Reserve Governor Waller; 26:00: U.S. 5-year Treasury auction; 26:45: Remarks by ECB President Lagarde; 27:00: Release of the FOMC minutes.We will be closely monitoring whether the release of the FOMC minutes triggers significant movement in the U.S. dollar.