Market participants are likely watching for signs of a rebound in the U.S. dollar, which has been weakening following remarks by a key official

Market participants are likely watching for any potential rebound in the U.S. dollar, which has weakened following remarks by a key official

25.06.2025

In the previous day’s U.S. currency trading, the U.S. dollar was the weakest performer throughout the day after Federal Reserve Chair Powell reiterated his standard stance, stating, “We are anticipating two rate cuts this year, but the economy remains strong, so there is no need to rush.”The euro rose against the dollar from 1.1571 to 1.1641. It trended upward while finding support at the 20-period moving average on the hourly chart. On the 4-hour chart, it appears to be entering a band walk 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 fluctuating around the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, a solid rebound occurred upon touching the 20-period MA, while the daily chart shows a "B-band walk" 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, and France’sConsumer Confidence Index, at 5:45 PM UK time a speech by BOE Deputy Governor Lombardelli, at 8:00 PM US time the MBA Mortgage Applications Index, at 11:00 PM US time US New Home Sales and Fed Chair Powell’s Congressional Testimony, at 11:30 PM US time US Weekly Crude Oil Inventories, and at 2:00 AM US time a US 5-year Treasury auction.We will carefully assess the potential for a recovery in the US dollar, which has weakened on the back of remarks by key officials.