Market participants are likely to watch price movements cautiously at the start of FOMC Week
24.07.2023
- Chicago Fed National Activity Index
- UK Manufacturing/Services PMI
In U.S. currency markets last weekend, the strength of the U.S. dollar became particularly evident during U.S. trading hours, with the dollar rising slightly against the euro. The EUR/USD pair fell from 1.1144 to 1.1107. The 20-period moving average (MA) on the hourly chart is acting as resistance, weighing on the upside. As the pair continues to trade below the 20-period MA during today’s Asian session, traders should remain vigilant regarding the dollar’s price movements during U.S. trading hours.
Among European currencies, the pound rose against the yen following the release of UK June retail sales data, which showed the decline narrowing from the previous reading of -2.1% to -1.0%. GBP/JPY rose by approximately 2.6 yen, from 179.916 to 182.524.Although the pair had been trading below the 4-hour 20-MA, last weekend’s rally pushed it back above the 4-hour 20-MA. Since GBP/JPY has now moved above the daily 20-MA as well, we will be watching closely to see if the pound’s momentum carries over into the start of the week.
Today, during European trading hours, the French Manufacturing/Services PMI will be released at 16:15, the German Manufacturing/Services PMI at 16:30, the Eurozone Manufacturing/Services PMI at 17:00, and the UKmanufacturing and services PMIs, the Mexican Consumer Price Index at 21:00, the U.S. Chicago Fed National Activity Index at 21:30 during U.S. trading hours, the U.S. manufacturing and services PMIs at 22:45, and a U.S. 2-year Treasury auction at 02:00. With key events from the FOMC, ECB, and BOJ all occurring this week, we plan to carefully monitor price movements at the start of the week.
Author: Keisuke Sakurai
