Keep an eye on the direction of the U.S. dollar, which is weakening on the eve of the FOMC meeting

Keep an eye on the direction of the U.S. dollar, which is weakening on the eve of the FOMC meeting

31.10.2023

In the U.S. currency market the previous day, the U.S. dollar was the weakest currency during U.S. trading hours. The EUR/USD pair rebounded from 1.0547 to 1.0624. It broke above the 200-period SMA on the 4-hour chart with a real body candle and reached the 200-period EMA.On the daily chart as well, the EUR/USD pair is rebounding strongly and has broken above the 20-day moving average (20MA). We need to carefully assess whether the euro’s rebound against the yen will continue.

European currencies saw the euro fluctuate against the yen after Germany’s October consumer price index, released yesterday, fell to 3.8% year-over-year from 4.5%.The euro/yen pair fluctuated between 157.693 and 158.926. However, since the daily chart shows a pattern of gradually higher lows, it will be worth watching to see if the pair will break through this year’s high.

Today, at 15:30, France’s third-quarter GDP and consumer spending will be released; at 16:00, Thailand’s current account balance;at 4:45 PM, France’s Consumer Price Index and Producer Price Index; at 7:00 PM, the Eurozone’s Consumer Price Index; at 9:00 PM, South Africa’s trade balance and Brazil’s employment statistics; at 9:30 PM, Canada’s GDP and the U.S. Employment Cost Index; at 10:00 PM, the U.S.Housing Price Index, U.S. S&P Case-Shiller Home Price Index; at 22:45, U.S. Chicago Purchasing Managers’ Index; at 23:00, U.S. Consumer Confidence Index; and at 25:00, remarks by Nagel, President of the German Federal Bank, are scheduled.We want to carefully assess the direction of the U.S. dollar, which has been weakening on the eve of the FOMC meeting.