Investors should be on the lookout for sudden price movements triggered by remarks from key figures and the release of the FOMC minutes (U.S. time)

Investors should be on the lookout for sudden price movements triggered by remarks from key figures and the release of the FOMC minutes (U.S. time)

11.10.2023

In the U.S. currency market yesterday, a trend of selling the yen and the U.S. dollar emerged as geopolitical risks subsided, causing the EUR/USD pair to rise. The EUR/USD rose from 1.0554 to 1.0619 yesterday, returning to the 20-day moving average (MA), which serves as a key support level. On the higher timeframe (weekly chart), the pair appears to be entering a rebound phase following a bullish candle with a lower wick, so I intend to closely monitor currency strength during U.S. trading hours.

Among European currencies, the pound emerged as the strongest toward the close of trading, with GBP/JPY rising from 181.526 to 182.771. GBP/JPY has continued to climb during today’s Asian session, reaching 182.871. With the UK Consumer Price Index set to be released again next week, we will need to carefully assess whether the pound will continue to strengthen against other currencies heading into the middle of next week.

Today’s schedule includes the German Consumer Price Index at 3:00 PM, Turkey’s Current Account Balance at 4:00 PM, Taiwan’s Trade Balance at 5:00 PM, remarks by Fed Governor Bowman at 5:15 PM, the U.S. MBA Mortgage Applications Index at 8:00 PM, and Canadian Housing Starts at 9:30 PM,U.S. Producer Price Index, at 11:15 PM: Remarks by U.S. Federal Reserve Governor Waller, at 1:00 AM: Russian Consumer Price Index, at 1:15 AM: Remarks by U.S. Federal Reserve Bank of Atlanta President Bostic, at 2:00 AM: U.S. 10-year Treasury auction, at 3:00 AM: Release of U.S. FOMC minutes, and at 3:30 AM: Remarks by U.S. Federal Reserve Bank of Boston President Collins.Remarks by Boston Fed President Collins. We must remain highly vigilant for sudden price movements caused by the overlapping remarks from key figures during U.S. trading hours and the release of the FOMC minutes.