Market participants are likely to keep a close eye on the euro’s price movements, which have been fluctuating and facing resistance at higher levels.

Market participants are likely to keep a close eye on the euro’s price movements, which have been fluctuating and facing resistance at higher levels.

20.09.2023

In the U.S. currency market yesterday, the dollar remained range-bound against the yen ahead of today’s FOMC policy rate announcement. The USD/JPY pair fluctuated within a narrow range between 147.505 and 147.918 throughout the session. On the hourly chart, the pair is trading around the 20-day moving average (MA), while on the 4-hour chart, it continues to trade in a tight range, supported by the 20-day MA on the downside.We should remain vigilant regarding the USD’s price movement should the FOMC decide to keep interest rates unchanged at today’s meeting.

European currencies saw the euro, which had been rising, pull back in late U.S. trading after the final August consumer price index for the eurozone, released yesterday, came in at 5.2%, down from 5.3% the previous month.The euro/yen pair rose sharply from 157.738 to 158.275 before losing momentum, effectively erasing nearly all of its gains. Furthermore, since the euro/dollar pair also closed with a complete reversal, we will be watching closely to see if today’s FOMC meeting will cap further gains.

Today’s schedule includes Germany’s Producer Price Index, the UK’s Consumer Price Index, and UK retail sales at 3:00 PM; South Africa’s Consumer Price Index at 5:00 PM; Eurozone construction output at 6:00 PM; and the U.S. MBA Mortgage Applications Index at 8:00 PM.South African retail sales are scheduled for 11:30 PM, followed by U.S. weekly crude oil inventories at 1:30 AM, the FOMC policy rate decision and statement at 1:30 AM, and a press conference by Fed Chair Powell at 1:30 AM. We will be closely monitoring the euro’s price action, which has been range-bound with resistance at higher levels.