All eyes are on the direction of the U.S. dollar, which has been volatile following remarks by Federal Reserve Chair Powell

All eyes are on the direction of the U.S. dollar, which has been volatile following remarks by Federal Reserve Chair Powell

04.04.2024

In yesterday’s U.S. trading session, the U.S. dollar fluctuated sharply against the yen after Federal Reserve Chair Powell stated that “we need to carefully assess whether the recent inflation data is temporary,” effectively avoiding a clear indication of when interest rates might be cut. The USD/JPY pair traded between 151.445 and 151.953 before falling back in late U.S. trading.With resistance remaining strong during today’s Asian session, we will need to carefully monitor price movements during the European session.

Despite the fact that the unemployment rate in the Eurozone’s February employment statistics, released yesterday, worsened by 0.1 percentage points from the previous month’s 6.4% to 6.5%, the euro rose against the yen. The euro/yen pair rose from 163.069 to 164.367.During today’s Asian trading session, the pair has continued its upward trend, reaching 164.525. We will be watching to see if EUR/JPY continues to climb toward its recent high of 165 yen.

Today, the Swiss Consumer Price Index is scheduled for 3:30 PM, the French Services PMI at 4:50 PM, the German Services PMI at 4:55 PM, the Eurozone Services PMI at 5:00 PM, the UK Services PMI at 5:30 PM, the Eurozone Producer Price Index at 6:00 PM, and the EurozoneECB Governing Council Meeting Minutes, 9:30 PM: Canada Trade Balance, U.S. Initial Jobless Claims, U.S. Trade Balance,23:00: US – Remarks by Harker, President of the Federal Reserve Bank of Philadelphia; 23:30: US – Weekly Natural Gas Inventories; 25:15: US – Remarks by Barkin, President of the Federal Reserve Bank of Richmond; 27:00: US – Remarks by Mester, President of the Federal Reserve Bank of Cleveland.We want to carefully assess the direction of the U.S. dollar, which has been volatile following remarks by Fed Chair Powell.