All eyes are on whether the U.S. dollar will fluctuate following the release of the University of Michigan Consumer Sentiment Index

All eyes are on whether the U.S. dollar will fluctuate following the release of the University of Michigan Consumer Sentiment Index

10.11.2023

In the previous day’s U.S. currency trading, the U.S. dollar emerged as the strongest currency during U.S. trading hours following remarks by Federal Reserve Chair Powell that “we will not hesitate to tighten further if necessary” and that “while the labor market remains tight, the balance is improving.”The EUR/USD pair fell from 1.0725 to 1.10660. The decline halted upon touching the 200-period EMA on the hourly chart. We will be watching to see if the U.S. dollar maintains its strength during today’s U.S. trading hours, while keeping an eye on economic data releases.

Despite comments yesterday from MPC member Pill stating that "monetary policy tightening must be maintained to bring inflation down," the pound fell against the yen. GBP/JPY dropped from 185.871 to 184.817.It broke below the 20-period moving average (MA) on the 4-hour chart. However, on the higher-timeframe daily chart, GBP/JPY remains above the 10-period MA, so traders should pay close attention to any volatility caused by the release of UK economic indicators during today’s Asian trading session.

Today, at 4:00 PM: UK GDP, UK Industrial Production, UK Trade Balance, Norway CPI, Turkey Employment Statistics, Turkey Industrial Production; at 4:30 PM: Hungary CPI; at 5:00 PM: Czech Republic CPI; at 5:30 PM: Hong Kong GDP;at 9:00 PM: Mexico’s industrial production and India’s industrial production; at 9:30 PM: remarks by ECB President Lagarde and remarks by Logan, President of the Dallas Fed; at 11:00 PM: remarks by Bostic, President of the Atlanta Fed; and at midnight: the University of Michigan Consumer Sentiment Index.We will be watching for any directional movement in the U.S. dollar following the release of the U.S. University of Michigan Consumer Sentiment Index.