Should we keep a close eye on the euro’s price movements, which have been fluctuating and facing resistance at higher levels?

Should we keep a close eye on the euro’s price movements, which have been fluctuating and seeing resistance at higher levels?

20.09.2023

In the U.S. currency market yesterday, the U.S. dollar remained in a stalemate against the yen ahead of today’s FOMC policy rate announcement. The USD/JPY pair spent the entire session fluctuating between 147.505 and 147.918.On the hourly chart, the pair is trading around the 20-period moving average (MA), while on the 4-hour chart, it continues to see minor fluctuations with the 20-period MA providing support on the downside. We should remain vigilant regarding the USD’s price movement should the FOMC decide to keep the policy rate unchanged at today’s meeting.

European currencies saw the euro, which had been rising following yesterday’s release of the final August consumer price index for the eurozone—which came in at 5.2% compared to 5.3% the previous month—pull back toward the end of the U.S. trading session.The euro/yen pair rose sharply from 157.738 to 158.275 before losing momentum, effectively offsetting nearly all of its gains. Since the euro/dollar pair also closed with a complete round-trip movement, we will be watching closely to see if today’s FOMC meeting will cap further gains.

Today’s schedule includes the German Producer Price Index, UK Consumer Price Index, and UK Retail Sales at 15:00; the South African Consumer Price Index at 17:00; Eurozone Construction Output at 18:00; and the U.S. MBA Mortgage Applications Index at 20:00.South Africa’s retail sales figures are scheduled for 11:30 p.m., followed by U.S. weekly crude oil inventories at 1:30 a.m., the FOMC policy rate decision and statement at 1:30 a.m., and a press conference by Fed Chair Powell at 1:30 a.m.We will closely monitor the euro’s price action, which has been fluctuating and facing resistance at higher levels.