Will the FOMC Keep the Policy Rate Unchanged? Market Participants on Alert for Price Movements
14.06.2023
- U.S. FOMC Policy Rate and Statement Announcement
- UK GDP
In the U.S. currency market yesterday, the U.S. dollar rose against the yen after the core U.S. Consumer Price Index (CPI) for May, released yesterday, rose to 5.3% from the market forecast of 5.2%.The USD/JPY pair rose by approximately 1.3 yen, from 139.003 to 140.306, reaching its upper limit for the past month. Since yesterday’s rally pushed the pair above the 50% Fibonacci retracement level on the daily chart, investors should remain cautious regarding whether it will continue to rise during today’s FOMC meeting.
Among European currencies, the euro rose against the U.S. dollar ahead of the ECB meeting the day after tomorrow. The euro/dollar pair rose by about 70 pips, from 1.0753 to 1.0823.The pair moved above the 20-day moving average on the daily chart. However, during today’s Asian trading session, it has already pulled back to around half of yesterday’s gains and is currently trading around 1.0783. We’ll be watching closely to see if the U.S. dollar strengthens and the euro falls during today’s FOMC meeting.
Today, at 15:00, UK GDP, UK industrial production, and the UK trade balance will be released; at 18:00, Eurozone industrial production; at 20:00, South African retail sales and the U.S. MBA mortgage applications index; at 21:30, the U.S. Producer Price Index;at 11:30 PM, U.S. weekly crude oil inventories; at 3:00 AM, the U.S. FOMC policy rate decision and statement; at 3:30 AM, a press conference by Fed Chair Powell; and at 7:45 AM the following day, New Zealand’s first-quarter GDP.We will carefully assess whether the FOMC will keep the policy rate unchanged.
Author: Keisuke Sakurai
