Will the U.S. dollar strengthen ahead of the FOMC meeting, or will the market wait to see which way it goes?
19.03.2024
- Switzerland: Trade Balance
- Canada: Consumer Price Index
In the previous day’s U.S. currency trading, the U.S. dollar traded sideways against the yen after the U.S. NAHB Housing Market Index for March, released yesterday, rebounded to 51 from 48 the previous month.USD/JPY 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. As the pair has entered the 150 yen range during today’s Asian session, we should watch to see if the dollar strengthens ahead of tomorrow’s FOMC meeting.
European currencies saw the euro fluctuate against the yen after yesterday’s release of the Eurozone’s February consumer price index 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. As the euro has strengthened during today’s Asian session, rising to the 163 yen level, we will be watching to see if this price level holds during European trading hours.
Today, the RBA policy rate and statement will be released at 12:30 p.m. (AEST), followed by Japan’s industrial production and remarks by RBA Governor Block at 1:30 p.m. (AEST), a press conference by Bank of Japan Governor Ueda at 3:30 p.m. (AEST), and Switzerland’s trade balance at 4:00 p.m. (AEST).at 7:00 PM, the German and Eurozone ZEW Economic Sentiment Surveys; at 9:30 PM, the Canadian Consumer Price Index and U.S. Housing Starts; at 2:00 AM, the U.S. 20-year Treasury auction; at 5:00 AM, U.S. Foreign Direct Investment in U.S. Securities; and at 6:45 AM the following day, New Zealand’s Q4 Current Account Balance.We will be watching closely to see if the US dollar strengthens ahead of the FOMC meeting.
Author: Keisuke Sakurai
