With the U.S. FOMC meeting approaching, attention is turning to the direction of the U.S. dollar, which has reached its strongest level

With the U.S. FOMC meeting approaching, attention is turning to the direction of the U.S. dollar, which has reached its strongest level

01.05.2024

Yesterday, the three major U.S. stock indices all fell, resulting in a market environment characterized by falling stock prices, rising interest rates, and lower oil prices. WTI crude oil fell by about 1.5% to $81.20.Natural gas fell by 4.5% and is trading around $1.95. All five major precious metals declined, with silver seeing the sharpest drop, falling 2.6% from the previous day to trade in the $26.3 range.

Ahead of today’s U.S. FOMC meeting, the U.S. dollar emerged as the strongest currency during U.S. trading hours. The USD/JPY pair rebounded from 156.062 to 157.801, recovering to around half the extent of the sharp decline seen the day before yesterday.On the hourly chart, the pair is trading above the 20-period moving average (MA), and on the 4-hour chart, it is rebounding above the 10-period MA. However, on the daily chart, the RSI has exceeded 70, so caution is advised regarding a potential decline during European trading hours.

Today’s economic indicators include New Zealand’s employment report at 7:45, South Korea’s trade balance at 9:00, a press conference by RBNZ Governor Orr at 10:00, the UK Manufacturing PMI at 17:30, the US MBA Mortgage Applications Index at 20:00, the US ADP Employment Report at 21:15, the US PMI at 22:45,at 11:00 PM: US Construction Spending, US JOLTS Job Openings, and US ISM Manufacturing PMI; at 3:00 AM: US FOMC interest rate decision and statement release; at 3:30 AM: US Fed Chair Powell’s press conference; and at 5:15 AM: remarks by Canadian BOC Governor McClem. We must remain highly vigilant regarding the direction of the US dollar, which has strengthened significantly ahead of the US FOMC meeting.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed