Should We Be Wary of Price Movements in the Weakening U.S. Dollar During Market Closures?
18.04.2025
- Japan: Consumer Price Index
- U.S. Daily: Remarks by the President of the San Francisco Federal Reserve Bank
In U.S. currency trading the previous day, the U.S. dollar fell against the pound after the April Philadelphia Fed Business Outlook Index, released yesterday, dropped to -26.4 from 12.5 the previous month—falling well short of market expectations of +6.7.The GBP/USD pair rose from 1.3202 to 1.3274. The price moved from the -2σ to the +3σ levels of the hourly Bollinger Bands. It has also hit new highs during today’s Asian trading session, with the U.S. dollar’s weakness becoming increasingly apparent.
European currencies fell against the U.S. dollar as the ECB cut its policy rate by 0.25 percentage points from 2.65% to 2.40% at its monetary policy meeting announced yesterday.The EUR/USD pair fell from 1.1408 to 1.1335, with price action straddling the 20-period moving average on the hourly chart. Although the pair has not reached a new high on the 4-hour chart, it has not hit a new low either, indicating that it is entering a triangular consolidation pattern.
Today’s economic indicators include Japan’s Consumer Price Index at 8:30 and remarks by the President of the Federal Reserve Bank of San Francisco at 24:00; however, since major markets in Europe and the U.S. are closed today for Good Friday, no other notable economic indicators are scheduled.We should remain highly vigilant regarding price movements in the weakening U.S. dollar during the market closure.
