Will the U.S. FOMC meeting trigger changes in currency strength? Caution is advised.
12.06.2024
- U.S. Consumer Price Index
- UK Industrial Production
In the U.S. currency market yesterday, the U.S. dollar rose slightly against the yen ahead of today’s FOMC meeting. The USD/JPY pair traded between 156.804 and 157.401, remaining within a range centered around the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the pair is trading above the 20-period MA, and on the daily chart, prices are showing a trend of higher lows.We will be closely monitoring today’s FOMC meeting to gauge the likelihood of a rate cut by year-end.
Among European currencies, the euro fell against the U.S. dollar for the third consecutive day. The EUR/USD pair dropped from 1.0773 to 1.0719, falling to the -3σ level of the hourly Bollinger Bands. On the 4-hour chart, the pair has pulled back after encountering resistance at the 10-period moving average, and on the daily chart, the RSI is currently declining from 60 to 38, so traders should keep a close eye on price movements ahead of the FOMC meeting.
Today’s schedule includes South Korea’s employment statistics at 8:00, Japan’s domestic corporate goods price index at 8:50, China’s producer price index at 10:30, Germany’s consumer price index at 15:00, the UK’s monthly GDP, industrial production, and manufacturing output at 15:00, Thailand’s central bank policy rate at 16:05,at 8:00 PM, the U.S. MBA Mortgage Applications Index; at 9:00 PM, India’s Consumer Price Index and Industrial Production; at 9:30 PM, the U.S. Consumer Price Index; at 11:30 PM, U.S. weekly crude oil inventories; at 3:00 AM, the U.S. FOMC policy rate decision and statement; and at 3:30 AM, a press conference by U.S. Federal Reserve Chair Powell.I intend to watch the situation carefully to see if the U.S. FOMC meeting will bring any changes to currency strength.
Author: Keisuke Sakurai
