Will the market wait and see which direction the U.S. dollar takes following Fed Chair Powell’s remarks?
15.11.2024
- Collins (U.S.): Remarks by the President of the Boston Federal Reserve Bank
- UK Industrial Production
In the previous day’s U.S. currency trading, the dollar rose against the yen after Federal Reserve Chair Powell stated that “the economy is not signaling a need to accelerate the pace of rate cuts.” While emphasizing that the economy is moving toward the 2% inflation target, he indicated that the Fed could exercise caution in determining the pace of rate cuts. The USD/JPY exchange rate rose from 155.321 to 156.416, marking the fourth consecutive day of yen weakness and dollar strength.
Despite the fact that the Eurozone’s September industrial production, released yesterday, fell to -2.8% year-on-year from 0.1% the previous month, the euro rose against the yen.The EUR/JPY pair rose from 163.805 to 164.979. It has moved from below the 20-period moving average (MA) on the hourly chart to above it. On the 4-hour chart, the pair is rising with support from the 200-period simple moving average (SMA), and on the daily chart, it is currently attempting to break through the resistance line formed by the 200-period SMA.
Today, at 4:00 PM: UK Q3 GDP, UK Industrial Production, UK Manufacturing Output; at 4:30 PM: Swiss Producer Price Index; at 4:45 PM: French Consumer Price Index; at 10:30 PM: Canadian Wholesale Sales, U.S. Retail Sales,US: NY Fed Manufacturing Index, at 11:00 PM: Canada’s Existing Home Sales, US: Remarks by Collins, President of the Boston Fed, at 11:15 PM: US Industrial Production and US Capacity Utilization, at 12:00 AM: US Business Inventories, and at 3:15 AM: Remarks by Williams, President of the NY Fed.We will carefully assess the direction of the U.S. dollar, which rose following remarks by Fed Chair Powell.
Author: Keisuke Sakurai
