Should We Be on Alert for Sharp Fluctuations in the U.S. Dollar Following Remarks by Fed Chair Powell?
22.03.2024
- Bostic (U.S.): Remarks by the President of the Atlanta Federal Reserve Bank
- Retail Sales (Canada)
In the U.S. currency market yesterday, the U.S. dollar rose against the yen despite the fact that the U.S. March PMI (Purchasing Managers’ Index), released yesterday, was revised downward to 52.2 from the previous month’s 52.5 for the composite index.The USD/JPY pair rose from 150.268 to 151.746, rebounding after touching the 75-period moving average on the hourly chart. However, as resistance has been building during today’s Asian session, traders should be cautious of a potential decline during the U.S. trading session.
European currencies saw the pound fall against the yen following yesterday’s Bank of England (BOE) policy rate announcement, in which the policy rate was held steady at 5.25%, in line with market consensus. The GBP/JPY pair fell from 193.497 to 191.827.The price fell to just below the 75-period moving average (MA) on the hourly chart. On the 4-hour chart, GBP/JPY is positioned just below the 20-period MA, so we need to be cautious about whether it will continue to fall without finding support during European trading hours.
Today’s schedule includes Japan’s National Consumer Price Index at 8:30, the UK’s GFK Consumer Confidence Index at 9:01, the RBA’s Semi-Annual Financial Stability Report at 9:30, UK Retail Sales at 16:00,Turkey’s Economic Sentiment Index and Capacity Utilization Rate, and Germany’s Import Price Index at 9:30; the German IFO Business Climate Index and remarks by Nagel, President of the German Federal Bank, at 18:00; the UK’s CBI Business Survey at 20:00; Canadian Retail Sales at 21:30;at 22:00, remarks by U.S. Federal Reserve Chair Powell; and at 25:15, remarks by U.S. Atlanta Fed President Bostic are scheduled. Be on high alert for sharp fluctuations in the U.S. dollar caused by remarks from key officials.
Author: Keisuke Sakurai
