Investors should keep a close eye on price movements this weekend following the release of the U.S. CPI data
11.02.2022
- UK Q4 GDP (Preliminary Estimate)
- University of Michigan Consumer Sentiment Index
In U.S. markets yesterday, the U.S. dollar surged after the U.S. Consumer Price Index (CPI) came in higher than expected at 7.5%. The EUR/USD pair initially rose but then broke below the lower boundary of its trading range at 1.140, falling to 1.137. A key point to watch is whether the EUR/USD pair can decisively break above 1.138—the level near the 200-period simple moving average (SMA)—with a solid candlestick body.
Among European currencies, the euro has weakened slightly against the pound, with the EUR/GBP pair falling back from 0.844 to 0.841. The GBP/USD pair has begun to break below the 1.351–1.358 range it had been trading in, and since it has now fallen below the 200-day SMA on the hourly chart, we will be watching closely to see if it continues to decline during today’s U.S. trading hours.
Today, the following releases are scheduled: at 16:00 CET, the UK’s Q4 GDP (flash estimate), UK industrial production, UK manufacturing output, UK goods trade balance, and Germany’s consumer price index; at 16:30 CET, Turkey’s industrial production; and at 24:00 EST, the University of Michigan Consumer Sentiment Index.With Japanese markets closed for a holiday, I intend to closely monitor the situation to see if any significant price movements occur during U.S. trading hours this Friday.
Author: Keisuke Sakurai
