Will the U.S. FOMC Meeting Bring Changes to Currency Strength and Weakness? 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 moving average, and on the daily chart, prices are showing a pattern 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 euro/dollar 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 pay close attention to price movements following 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 at 15:00, the UK’sIndustrial Production, UK Manufacturing Output, Thailand’s Central Bank Policy Rate at 16:05, the US MBA Mortgage Applications Index at 20:00, India’sConsumer Price Index, and India’s Industrial Production; at 21:30, the U.S. Consumer Price Index; at 23:30, U.S. weekly crude oil inventories; at 27:00, the U.S. FOMC policy rate decision and statement; and at 27:30, 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 about any changes in currency strength.
Author: Keisuke Sakurai
