Market participants are likely to watch price movements cautiously at the start of FOMC Week

Market participants are likely to watch price movements cautiously at the start of FOMC Week

24.07.2023

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 action 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 U.S. time, 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, I plan to carefully monitor price movements at the start of the week.

Past Market Reports

1. 21.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

2. 20.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

3. 17.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

4. 16.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

5. 15.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

6. 14.04.2026

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

7. 13.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

8. 10.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

9. 09.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

10. 08.04.2026

    Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran