Will the FOMC keep interest rates unchanged? Market participants are on alert for price movements.
14.06.2023
- U.S. FOMC Policy Rate and Statement Release
- UK GDP
In yesterday’s U.S. currency trading, 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 the upper limit of its range over the past month.Since USD/JPY broke above the 50% Fibonacci retracement level on the daily chart following yesterday’s rally, we need to be cautious about 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 EUR/USD pair rose by about 70 pips from 1.0753 to 1.0823, moving above the 20-day moving average on the daily chart. However, during today’s Asian session, it has already pulled back to around half of yesterday’s gains and is currently trading near 1.0783. We will be watching closely to see if the US dollar strengthens and the euro falls during today’s FOMC meeting.
Today, at 3:00 PM, UK GDP, UK industrial production, and UK trade balance will be released; at 6:00 PM, Eurozone industrial production; at 8:00 PM, South African retail sales and the US MBA mortgage applications index; at 9:30 PM, the US Producer Price Index; at 11:30 PM, US weekly crude oil inventories;at 3:00 AM, the U.S. FOMC interest 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 Q1 GDP. We will carefully monitor the FOMC to determine whether the policy rate will remain unchanged.
Author: Keisuke Sakurai
