Will the U.S. dollar experience sharp fluctuations following the FOMC meeting after the release of the U.S. CPI? Caution is advised.

Will the U.S. dollar experience sharp fluctuations following the FOMC meeting after the release of the U.S. CPI? Caution is advised.

13.12.2023

In yesterday’s U.S. trading session, the U.S. dollar recovered from a temporary decline and rose during U.S. trading hours after the U.S. November Consumer Price Index (CPI), released yesterday, fell by 0.1 percentage points year-over-year to 3.1% from the previous month’s 3.2%. The USD/JPY pair fell from 146.163 to 144.734 before recovering to 145.822.During today’s Asian session, the market has shown no clear direction and is stagnating just below the 20-period moving average on the hourly chart. We should remain vigilant regarding whether today’s FOMC meeting will trigger significant movements in the U.S. dollar.

Ahead of tomorrow’s Swiss National Bank (SNB) policy rate announcement, the Swiss franc strengthened against the Japanese yen. The USD/CHF pair fell from 0.8788 to 0.8721.This marks the second consecutive day of decline following a touch of the 20-day moving average on the daily chart. We need to carefully assess whether the Swiss franc will continue to strengthen against the US dollar, or whether currency strength will remain in a stalemate depending on today’s early-morning FOMC meeting and tomorrow’s SNB announcement.

Today, at 4:00 PM, UK GDP, UK Industrial Production, UK Manufacturing Production, and Sweden’s Services PMI will be released; at 7:00 PM, EurozoneIndustrial Production, South African Retail Sales at 8:00 PM, Indian Money Supply at 8:30 PM, U.S. MBA Mortgage Applications Index at 9:00 PM, U.S. Producer Price Index at 10:30 PM, U.S. FOMC policy rate decision and statement at 10:00 PM, and a press conference by U.S. Federal Reserve Chair Powell at 10:30 PM.We should remain highly vigilant regarding price movements, as the U.S. dollar is likely to experience significant volatility following the release of the U.S. CPI and 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