Should we be wary of U.S. dollar movements ahead of the FOMC meeting?

Should we be wary of U.S. dollar movements ahead of the FOMC meeting?

17.12.2024

In yesterday’s U.S. currency trading, the U.S. dollar rose against the yen ahead of tomorrow’s FOMC meeting. The USD/JPY pair climbed from 153.335 to 154.466. The price rose along the 20-period moving average on the hourly chart. On the 4-hour chart, the price is moving along the +2σ line of the Bollinger Bands, and on the daily chart, it has risen for six consecutive days. We will need to keep an eye on price movements during U.S. trading hours to see if the U.S. dollar continues to rise against the yen.

Among European currencies, the Swiss franc traded in a range against the yen. The Swiss franc held its ground against the Japanese yen, which had been the weakest currency all day. The CHF/JPY pair traded within a range of 171.713 to 172.862.On the 4-hour chart, prices are being rejected by the 200 EMA as an upper resistance level, while on the daily chart, the pair is currently searching for direction just below the 200 SMA. On the weekly chart, the Bollinger Band width is contracting, and the RSI is hovering around 50.

Today’s economic indicators include the UK unemployment rate at 4:00 PM, the Hong Kong unemployment rate at 5:30 PM, the German IFO Business Climate Index at 6:00 PM, the German ZEW Economic Sentiment Survey and the Eurozone trade balance at 7:00 PM,at 9:00 PM: Mexico Retail Sales; at 10:30 PM: Canada Consumer Price Index, Canada Government Bond Trading Volume, and U.S. Retail Sales; at 11:15 PM: U.S. Industrial Production and U.S. Capacity Utilization; at 12:00 AM: U.S. Business Inventories and U.S. NAHB Housing Market Index; and at 3:00 AM: U.S. 20-Year Treasury Auction.I want to carefully assess the movement of the U.S. dollar ahead of the FOMC meeting.