Attention is focused on the direction of the U.S. dollar following the rise triggered by hints of a rate hold in the FOMC minutes

Attention is focused on the direction of the U.S. dollar following the rise triggered by hints of a rate hold in the FOMC minutes

20.02.2025

In the foreign exchange market yesterday, the U.S. dollar rose against the euro after the minutes of the FOMC meeting released yesterday indicated that "if inflation remains elevated, it may be possible to maintain the policy rate at a restrictive level." The EUR/USD pair fell from 1.0461 to 1.0401, dropping just below the 200-period simple moving average (SMA) on the hourly chart. On the 4-hour chart, the pair has fallen below the 20-period moving average (MA) line, which had previously served as support.

European currencies saw the pound fall against the yen despite yesterday’s release of the UK’s January Consumer Price Index (CPI), which rose to 3.0% year-on-year from 2.5% the previous month. The GBP/JPY pair fell from 192.120 to 190.467. The candlestick dropped just below the 200-period simple moving average (SMA) on the hourly chart.On the daily chart, a pullback along the 20-day moving average has occurred, and during today’s Asian session, the euro has continued to weaken, reaching 189.203.

Today’s schedule includes Japan’s foreign and domestic securities investment data at 8:50, Australia’s employment statistics at 9:30, China’s prime lending rate at 10:00, Indonesia’s current account balance at 12:00, Germany’s producer price index at 16:00, and the Eurozone’sConstruction Output, 10:30 PM US Initial Jobless Claims, Canada Industrial Product Prices, US Philadelphia Fed Business Outlook Index, US remarks by Chicago Fed President Goolsbee, 12:00 AM US Leading Economic Index, Eurozone Consumer Confidence Index, and 2:00 AM US Weekly Crude Oil Inventories.We will be watching the direction of the US dollar against the euro, which rose following hints of a rate hold in the US FOMC minutes.

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