Will the market wait and see which direction the U.S. dollar takes following Fed Chair Powell’s remarks cautioning against monetary easing?

Will the market wait and see which direction the U.S. dollar takes following Fed Chair Powell’s remarks cautioning against monetary easing?

04.12.2023

Last weekend, the U.S. dollar rose against the euro after Federal Reserve Chair Powell stated during a speech on the 1st that “while inflation is above target, it is too early to discuss the timing of monetary easing.”The EUR/USD pair fell from 1.0912 to 1.0828, continuing its decline along the 20-period moving average (MA) on the hourly chart. Since the pair temporarily dipped below the 20-period MA on the daily chart, we will be watching to see if the U.S. dollar strengthens against the euro at the start of the week.

Despite a slight improvement in the final reading of Germany’s November manufacturing PMI—released last weekend—from 42.3 in the previous month to 42.6, the euro fell against the yen.The EUR/JPY pair fell by approximately 2.1 yen, from 161.760 to 159.644. The euro became the weakest currency. Technically, the EUR/JPY pair has formed a lower high on the daily chart, with a large bearish candle extending from just below the 20-day moving average (MA) to the 75-day MA. Since the daily RSI has been trending downward after touching 70, we should remain cautious regarding whether the euro’s decline will continue.

Today’s schedule includes Germany’s trade balance at 4:00 PM, Turkey’s consumer price index and producer price index at 4:30 PM, Switzerland’s consumer price index at 5:00 PM, Brazil’s consumer price index at 6:00 PM, the Eurozone investor sentiment index at 6:30 PM, remarks by UK MPC member Dingra at 8:30 PM, Mexico’s gross fixed capital formation at 9:00 PM,at 11:00 PM: Eurozone ECB President Lagarde’s remarks; at 12:00 AM: US new manufacturing orders and US durable goods orders; at 1:30 AM: US 6-month Treasury bill auction; and at 3:00 AM: South Korea’s foreign exchange reserves. I intend to carefully monitor the direction of the US dollar, which has risen following Fed Chair Powell’s remarks cautioning against monetary easing.

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