Investors should watch for shifts in currency strength based on Fed Chair Powell’s remarks

Investors should watch for shifts in currency strength based on Fed Chair Powell’s remarks

25.08.2023

In U.S. trading yesterday, the U.S. dollar emerged as the strongest currency as initial jobless claims fell to 230,000 from 239,000 the previous week, coming in below the market forecast of 241,000.The euro fell against the dollar from 1.0876 to 1.0814. However, on the daily chart, the pair is hovering just below the 200-day moving average, which could provide support, so we will be watching for comments from key officials during U.S. trading hours.

In contrast to the FTSE, which was among the strongest performers in European equities, the pound fell against the yen. The GBP/JPY pair edged down slightly from 184.771 to 183.965, with the market lacking clear direction. Notably, price movements diverged among yen crosses yesterday; while the USD/EUR pair rose, the GBP/JPY pair fell. Therefore, traders should remain cautious regarding the pound’s price movements during European trading hours.

Today, Germany’s Q2 GDP is scheduled for 3:00 PM, Turkey’s capacity utilization rate for 4:00 PM, Germany’s IFO Business Climate Index for 5:00 PM, Brazil’s Consumer Price Index and Mexico’s Q2 GDP for 9:00 PM, the U.S. University of Michigan Consumer Sentiment Index and Mexico’s current account balance for 11:00 PM,at 11:05 PM, remarks by Fed Chair Powell; at 12:00 AM, Canada’s fiscal balance; and remarks by Harker, President of the Philadelphia Fed. We must remain highly vigilant for any shifts in currency strength resulting from Fed Chair Powell’s remarks.

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