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
- Total Retail Sales
In yesterday’s U.S. trading session, the U.S. dollar rose against the yen despite the fact that the U.S. March PMI (Purchasing Managers’ Index) was revised downward from the previous month’s 52.5 to 52.2. 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 U.S. trading hours.
European currencies saw the pound fall against the yen following yesterday’s Bank of England (BOE) policy rate announcement, in which the rate was kept at 5.25% as expected by the market. GBP/JPY fell from 193.497 to 191.827, dropping 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 should be cautious about whether it will continue to fall without finding support during European trading hours.
Today’s schedule includes Japan’s national CPI 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, Turkey’s Economic Sentiment Index, Turkey’s Capacity Utilization Rate, and Germany’s Import Price Index at 16:00, and Germany’sIFO Business Climate Index, and remarks by German Bundesbank President Nagel; at 8:00 PM, the UK CBI Business Survey; at 9:30 PM, Canadian Retail Sales; at 10:00 PM, remarks by Fed Chair Powell; and at 1:15 AM, remarks by Atlanta Fed President Bostic. We must remain highly vigilant for sharp fluctuations in the US dollar caused by key figures’ remarks.
Author: Keisuke Sakurai
