Markets are likely to keep a close eye on the U.S. dollar following the FOMC meeting, as it weakened on hints of a rate cut in September

Markets are likely to keep a close eye on the U.S. dollar following the FOMC meeting, as it weakened on hints of a rate cut in September

01.08.2024

In the U.S. currency market yesterday, although the Federal Open Market Committee (FOMC) kept the policy rate unchanged at 5.25–5.50%, the U.S. dollar became the weakest currency immediately after the meeting following remarks by Fed Chair Powell regarding a potential rate cut at the next meeting in September. The USD/JPY pair fell from 153.907 to 149.628, breaking below the 20-period moving average on the hourly chart.On the 4-hour chart, the price has reached the -3σ level of the Bollinger Bands, and on the daily chart, it has broken below the 200-day SMA.

Despite the preliminary July Harmonized Index of Consumer Prices (HICP) for the eurozone, released yesterday, showing a year-over-year increase of 2.6%—up from 2.5% the previous month—the euro weakened alongside the U.S. dollar. The euro/yen exchange rate fell from 166.545 to 162.055. During today’s Asian trading session, it has dropped further to 160.882. We will be watching closely to see if the euro continues to weaken against the yen.

Today’s economic indicators include Japan’s foreign and domestic securities investment and South Korea’s trade balance at 8:50 a.m., Indonesia’s manufacturing PMI at 9:30 a.m., Australia’strade balance, 4:00 PM Turkey Manufacturing PMI, 4:50 PM France Manufacturing PMI, 4:55 PM Germany Manufacturing PMI, 5:00 PM Eurozone Manufacturing PMI, 5:30 PM Hong Kong Retail Sales, 5:30 PM UK Manufacturing PMI, 6:00 PM EurozoneEmployment Report, UK BOE interest rate decision and statement at 8:00 PM, UK BOE Governor Bailey’s press conference at 8:30 PM, US Nonfarm Productivity Index at 9:30 PM, US PMI at 10:45 PM, US Construction Spending at 11:00 PM, and the US ISM Manufacturing Index.We will closely monitor the US dollar following the FOMC meeting, which weakened on hints of a September rate cut.

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