Market Participants May Be Watching for Room for the U.S. Dollar to Rebound After Weakening on Comments by a Key Figure
25.06.2025
- Canada: Consumer Price Index
- Germany's IFO Business Climate Index
In the U.S. currency market the previous day, the U.S. dollar remained at its weakest level throughout the day after Federal Reserve Chair Powell reiterated his standard stance, stating, “We anticipate two rate cuts this year, but the economy remains strong, so there is no need to rush.”The euro/dollar pair rose from 1.1571 to 1.1641. It trended higher while finding support at the 20-period moving average on the hourly chart. On the 4-hour chart, the pair is beginning to move along the +2σ line of the Bollinger Bands.
Among European currencies, the Swiss franc emerged as the strongest. The CHF/JPY pair traded between 178.640 and 180.078. Price action was seen straddling the 20-period moving average (MA) on the hourly chart.On the 4-hour chart, the pair rebounded firmly upon touching the 20-period MA, and on the daily chart, a “B-band walk” is observed along the +2σ line of the Bollinger Bands. We will be watching for signs of whether the Swiss franc will continue to strengthen during today’s European trading session.
Today’s schedule includes New Zealand’s trade balance at 7:45, Japan’s Business Services Price Index at 8:50, Australia’s Consumer Price Index at 10:30, Japan’s Economic Sentiment Index at 14:00, France’s Consumer Confidence Index at 15:45, and at 17:45, the UK’sremarks by BOE Deputy Governor Lombardelli, at 8:00 p.m. the U.S. MBA Mortgage Applications Index, at 11:00 p.m. U.S. New Home Sales and Fed Chair Powell’s congressional testimony, at 11:30 p.m. U.S. weekly crude oil inventories,and at 2:00 a.m., the U.S. 5-year Treasury auction. We will carefully assess the potential for a recovery in the U.S. dollar, which has weakened following remarks by key officials.
Author: Keisuke Sakurai
