Will market participants be on guard for any changes in the U.S. dollar’s support level following remarks by key figures?

Will market participants be on guard for any changes in the U.S. dollar’s support level following remarks by key figures?

13.06.2024

Despite the U.S. Federal Open Market Committee (FOMC) revising its outlook downward to suggest "only about one rate cut this year," the U.S. dollar was the weakest currency the previous day.The EUR/USD pair rose by approximately 120 pips from 1.0733 to 1.0851. It recovered from below the 20-period moving average (MA) on the hourly chart to above it. While it has broken above the 200-period simple moving average (SMA) on the 4-hour chart, it has not yet managed to break out from below the 20-period MA on the daily chart.

European currencies saw the euro rise against the yen, despite the release yesterday of Germany’s April current account balance, which fell to €25.9 billion from €27.6 billion the previous month.The EUR/JPY pair rose from 168.551 to 169.584. The rise followed the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the 200-period exponential moving average (EMA) is providing support on the downside, and on the daily chart, the upward trend continues without breaking the recent low. Therefore, we will be watching to see if the euro continues to rise during U.S. trading hours.

Today’s schedule includes the UK RICS House Price Index at 8:01, Japan’s Business Sentiment Index (BSI) and Japan’s Foreign and Domestic Securities Investment at 8:50, Australia’s Employment Report at 10:30, Thailand’s Consumer Confidence Index at 12:30, Switzerland’s Producer Import Prices at 15:30, and the Eurozone’sIndustrial Production, at 21:00 the Brazilian Retail Sales, at 21:30 the U.S. Initial Jobless Claims and U.S. Producer Price Index, at 25:00 remarks by U.S. Treasury Secretary Yellen and remarks by U.S. Federal Reserve Bank of New York President Williams, and at 26:00 the U.S. 30-year Treasury bond auction.We will closely monitor whether these key speeches will shift the downside support for the U.S. dollar.