Will the U.S. dollar strengthen ahead of the FOMC meeting, or will the market wait to see which direction it takes?
19.03.2024
- Switzerland: Trade Balance
- Canada: Consumer Price Index
In the U.S. currency market the previous day, the U.S. dollar traded sideways against the yen as the U.S. NAHB Housing Market Index for March, released yesterday, rebounded to 51 from 48 the previous month.The USD/JPY pair remained range-bound between 148.905 and 149.330, with the centerline of the Bollinger Bands continuing to show no clear upward or downward trend. Notably, the pair has entered the 150-yen range during today’s Asian trading session, so it will be important to monitor whether the U.S. dollar strengthens ahead of tomorrow’s FOMC meeting.
European currencies saw the euro trade in a narrow range against the yen after the EU’s February consumer price index, released yesterday, showed that the year-over-year core rate remained unchanged from the previous month at 3.1%. The euro/yen pair traded between 161.952 and 162.674. The hourly RSI remained around 50.During today’s Asian session, the euro has shown strength, rising to the 163-yen level, so we will be watching to see if this price level holds during the European session.
Today, at 12:30, the RBA will announce its policy rate and statement; at 13:30, Japan’s industrial production figures will be released, followed by remarks from RBA Governor Block; at 15:30, Bank of Japan Governor Ueda will hold a press conference; at 16:00, Switzerland’s trade balance will be released;at 19:00, the German and Eurozone ZEW Economic Sentiment Surveys; at 21:30, Canada’s Consumer Price Index and U.S. housing starts; at 26:00, the U.S. 20-year Treasury auction;at 29:00: U.S. Foreign Investment in U.S. Securities; and at 6:45 the following day: New Zealand’s Q4 Current Account Balance. We will be closely monitoring whether the U.S. dollar strengthens ahead of the FOMC meeting.
Author: Keisuke Sakurai
