All Eyes on the Direction of the U.S. Dollar Following Hints of a Hold in the FOMC Minutes
20.02.2025
- Australian Employment Statistics
- Philadelphia Fed Business Conditions Index
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 keep 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, it has fallen below the 20-period moving average (MA) line, which had previously provided 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-over-year from the previous month’s 2.5%. The GBP/JPY pair fell from 192.120 to 190.467.The candlestick fell to just below the 200-period simple moving average (SMA) on the hourly chart. On the daily chart, a pullback along the 20-period moving average (MA) has occurred, and during today’s Asian trading 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,at 16:00, Germany’s Producer Price Index; at 19:00, the Eurozone’s Construction Output; at 22:30, U.S. Initial Jobless Claims, Canada’s Industrial Product Prices, the U.S. Philadelphia Fed Business Outlook Index, and remarks by U.S. Federal Reserve Bank of Chicago President Goolsbee:remarks by Chicago Fed President Goolsbee; at 24:00, the U.S. Leading Economic Index and the Eurozone Consumer Confidence Index; and at 26:00, U.S. weekly crude oil inventories. We will be watching the direction of the U.S. dollar against the euro, which rose following hints of a rate hold in the U.S. FOMC minutes.
Author: Keisuke Sakurai
