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 pair 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 bottom, 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, and South Africa’s trade balance at 9:00 PM,Brazil’s employment report 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.