All eyes are on the direction of the U.S. dollar following the rise triggered by hints of a rate hold in the FOMC minutes

All eyes are on the direction of the U.S. dollar following its rise on hints of a rate hold in the FOMC minutes

20.02.2025

In the U.S. currency market yesterday, the dollar rose against the euro after the minutes of the FOMC meeting released yesterday suggested 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, the pair has fallen below the 20-period moving average (MA) line, which had previously provided support.

Despite the UK’s January Consumer Price Index (CPI), released yesterday, rising to 3.0% year-on-year from 2.5% the previous month, the pound fell against the yen. The GBP/JPY pair dropped from 192.120 to 190.467. The candlestick fell 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 (MA) has occurred, and during today’s Asian trading session, the euro has weakened further to 189.203.

Today’s schedule includes Japan’s foreign and domestic securities investment data at 8:50, Australia’s employment report 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, at 10:30 PM US Initial Jobless Claims, Canada Industrial Product Prices, US Philadelphia Fed Business Outlook Index, US remarks by Chicago Fed President Goolsbee, at 12:00 AM US Leading Economic Index, Eurozone Consumer Confidence Index, and at 2:00 AM US Weekly Crude Oil Inventories.We will be watching the direction of the US dollar against the euro, which rose following the US FOMC minutes suggesting a rate hold.