All eyes are on whether the U.S. dollar, which has been firming ahead of the FOMC meeting, will continue to rise.

All eyes are on whether the U.S. dollar, which has been firming ahead of the FOMC meeting, will continue to rise.

30.07.2024

In U.S. currency trading the previous day, the U.S. dollar strengthened during U.S. trading hours. The USD/JPY pair rose from 152.992 to 154.348, rebounding to just above the 20-period moving average (MA) on the hourly chart.On the 4-hour chart, the pair is positioned just below the 20-period moving average (MA), while on the daily chart, it is rebounding off the 200-period exponential moving average (EMA) as a support level. We will be watching price movements during U.S. trading hours to see if the dollar’s rebound will continue to rise, potentially coinciding with end-of-month flows.

Among European currencies, the euro weakened against the U.S. dollar. The EUR/USD pair fell by just over 60 pips, from 1.0869 to 1.0820. It dropped from the 200-period EMA on the hourly chart to the -3σ level of the Bollinger Bands.On the 4-hour chart, the price has fallen just below the 200 SMA, and a similar price movement is evident on the daily chart as well. We will need to keep a close eye on movements during European trading hours to see if the euro continues to weaken against the U.S. dollar.

Today’s economic indicators include Japan’s employment statistics at 8:30, Australia’s housing construction permits at 10:30,at 14:30, France’s real GDP and consumer spending; at 16:00, Switzerland’s KOF Leading Index; at 17:00, Germany’s second-quarter GDP; at 18:00, the Eurozone’s consumer confidence index andEconomic Sentiment, at 21:00 German Consumer Price Index, at 21:00 Mexican Q2 GDP, at 22:00 U.S. Housing Price Index and U.S. S&P Case-Shiller Home Price Index, and at 23:00 U.S. JOLTS Job Openings.With the U.S. dollar showing strength ahead of the FOMC meeting, we will be watching closely to see if it continues to rise or if its momentum wanes.