Will the US dollar face resistance as the CPI peaks out?

Will the US dollar face resistance as the CPI peaks out?

12.05.2022

In the U.S. currency market yesterday, the dollar rose briefly amid concerns over tightening expectations following the release of the U.S. Consumer Price Index, which came in at a high 8.3%. However, the dollar’s gains were short-lived, and the EUR/USD pair rebounded from 1.050 to 1.057. Since the EUR/USD has been fluctuating around the 20-period moving average on the 4-hour chart since the latter half of last month, we will carefully monitor the situation to see whether the pair continues to trade within this range or breaks out.

European currencies saw the pound fall even against the already weak Oceania currencies, resulting in a broad decline across the board for the pound. The GBP/AUD pair fell by approximately 200 pips from 1.775 to 1.756. Following the decline, price action has been consolidating near the 200-period EMA on the 4-hour chart as the market searches for direction. We will need to watch for any movement during European trading hours and pay close attention to the relative strength between the weak Australian dollar and the pound.

Today’s schedule includes the UK’s Q1 GDP (flash estimate), industrial production, and trade balance at 15:00 CET; Swiss producer import prices at 15:30 CET; and in US time, initial jobless claims and the producer price index at 21:30 ET;at 11:30 PM, US weekly natural gas inventories; at 12:35 AM, remarks by BOC Deputy Governor Gravel; at 2:00 AM, the US 30-year Treasury auction; and at 3:00 AM, remarks by San Francisco Fed President Daly. We should remain vigilant regarding the US dollar’s movements, as the upside has become heavy due to the CPI peaking out.

Past Market Reports

1. 22.04.2026New

   Will interest grow in the upside potential of the Swiss franc, which has risen against the yen?

2. 21.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

3. 20.04.2026New

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

4. 17.04.2026New

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

5. 16.04.2026New

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

6. 15.04.2026

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

7. 14.04.2026

   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

8. 13.04.2026

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

9. 10.04.2026

   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?

10. 09.04.2026

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