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

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

31.10.2023

In yesterday’s U.S. trading session, the U.S. dollar was the weakest currency. The EUR/USD pair rebounded from 1.0547 to 1.0624. It broke above the 200-period simple moving average (SMA) on the 4-hour chart with a real body and reached the 200-period exponential moving average (EMA). On the daily chart, the EUR/USD is also rebounding strongly and has broken above the 20-period moving average (MA). 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-on-year from 4.5%. The euro/yen pair fluctuated between 157.693 and 158.926. However, since the daily chart shows a gradual rise in the low points, it will be worth watching to see if the pair breaks through this year’s high.

Today’s schedule includes: France’s Q3 GDP and consumer spending at 3:30 PM, Thailand’s current account balance at 4:00 PM, France’s CPI and PPI at 4:45 PM, the Eurozone’s CPI at 7:00 PM, South Africa’s trade balance at 9:00 PM,Brazil’s employment statistics at 9:30 PM, Canada’s GDP and the U.S. Employment Cost Index at 9:30 PM, the U.S. Housing Price Index and the S&P/Case-Shiller Home Price Index at 10:00 PM, the U.S. Chicago PMI at 10:45 PM, the U.S. Consumer Confidence Index at 11:00 PM, and remarks by German Bundesbank President Nagel at 1:00 AM.We will carefully assess the direction of the US dollar, which has been weakening ahead of the FOMC meeting.

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