All eyes are on whether the release of the FOMC minutes will cause any changes in the U.S. dollar’s price movements

All eyes are on whether the release of the FOMC minutes will cause any changes in the U.S. dollar’s price movements

05.07.2023

In the U.S. currency market yesterday, liquidity was low due to the stock market being closed for the Fourth of July holiday, and the daily trading range for USD/JPY remained just under 50 pips. USD/JPY has been fluctuating around the 20-period moving average on the 4-hour chart, with a battle unfolding between the support level of 144 yen and the resistance level of 145 yen.Note that the FOMC minutes will be released today, so we should be on the lookout for significant price movements following the release of the summary.

European currencies fell against the yen after Germany’s May trade balance, released yesterday, declined to €14.4 billion from €18.4 billion the previous month. The euro/yen pair dropped by approximately 70 pips, from 157.903 to 157.147.During today’s Asian session, downward and upward momentum are currently in a stalemate around the 157.242 level. We will be watching to see if price action picks up during the U.S. session.

Today’s schedule includes French industrial production and the manufacturing production index at 3:45 PM, Turkey’s consumer price index and producer price index at 4:00 PM, remarks by German Bundesbank President Nagel, the French services PMI at 4:50 PM, the German services PMI at 4:55 PM, and the Eurozone services PMI at 5:00 PM,at 5:30 PM, the UK Services PMI; at 6:00 PM, the Eurozone Producer Price Index; at 11:00 PM, the US Manufacturing Orders Index; at 3:00 AM, the release of the FOMC minutes; and at 5:00 AM, remarks by John Williams, President of the New York Fed. We will be closely monitoring whether the release of the FOMC minutes causes any changes in the movement of the US dollar.