Will the euro, which has fallen against the U.S. dollar, recover? Or will the market wait and see which direction it takes after the FOMC meeting?

Will the euro, which has fallen against the U.S. dollar, recover? Or will the market wait and see which direction it takes after the FOMC meeting?

29.01.2026

Overnight, the U.S. dollar rose against the yen following the FOMC’s policy rate announcement early this morning, in which the policy rate was held steady at 3.50–3.75%.The USD/JPY pair rose from 152.145 to 154.038. On the hourly chart, the price moved from below the 20-period moving average (MA) to above it. On the 4-hour chart, the price has retreated from below the 10-period MA to just below the 20-period MA, and on the daily chart, the 200-period exponential moving average (EMA) has provided support, triggering a rebound.

Among European currencies, the euro fell against the U.S. dollar.The EUR/USD pair fell from 1.2044 to 1.1895, moving from above the 20-period moving average (MA) on the hourly chart to below it. On the 4-hour chart, the pair pulled back from the +3σ line of the Bollinger Bands to the centerline. Similarly, the daily chart shows a sharp pullback from the +3σ line of the Bollinger Bands. However, as the euro has regained strength during today’s Asian session, we will be watching price movements closely during the European session.

Today’s economic indicators include New Zealand’s trade balance at 6:45, Japan’s foreign and domestic securities investment at 8:50, New Zealand’s ANZ Business Confidence Index at 9:00, Australia’s Consumer Sentiment Index at 9:30, the Eurozone’s money supply at 18:00, South Africa’s Producer Price Index at 18:30, the Eurozone’sBusiness Sentiment, 10:30 PM US Nonfarm Productivity, US Trade Balance, US Initial Jobless Claims, and Canada International Merchandise Trade; at 12:00 AM US Business Inventories, US Durable Goods Orders, and US Manufacturing New Orders; at 12:30 AM Weekly Natural Gas Inventories; and at 3:00 AM US 7-Year Treasury Auction.I’d like to wait and see how the market reacts following the FOMC meeting to determine whether the euro, which has fallen against the U.S. dollar, will recover.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed