Will the U.S. FOMC meeting trigger changes in currency strength? Caution is advised.

Will the U.S. FOMC meeting trigger changes in currency strength? Caution is advised.

12.06.2024

In the previous day’s U.S. currency trading, 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 closely monitor 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 carefully to see if the U.S. FOMC meeting will bring about any changes in currency strength.

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