Keep an eye on CPI data from various countries
18.05.2022
- U.S. 20-Year Treasury Auction
- Canada: Consumer Price Index
U.S. currencies traded weakly against the euro yesterday, with the EUR/USD pair rising 130 pips from 1.042 to 1.056. Since the EUR/USD has retraced to around 1.056—the range seen through last week—the direction of the market may become unclear going forward. For now, we plan to adopt a wait-and-see approach regarding the market’s direction, taking into account today’s economic data releases.
Among European currencies, the pound emerged as the strongest, with GBP/USD rising by more than 180 pips from 1.231 to 1.249. Since GBP/USD has firmly broken above the 200-period SMA on the hourly chart, we will be watching to see if it can surpass this month’s high of 1.263, while also taking into account its relative strength against other currencies.
Today’s schedule includes the UK Consumer Price Index and UK Retail Price Index at 15:00 CET, the Eurozone Consumer Price Index at 18:00 CET, and—once U.S. trading hours begin—the Canadian Consumer Price Index and Canadian House Price Index at 21:30 CET, U.S. Housing Starts and U.S. Building Permits at 21:30 CET, U.S. Weekly Crude Oil Inventories at 23:30 CET, and the U.S. 20-Year Treasury Auction at 02:00 CET.and at 05:00, remarks by Harker, President of the Federal Reserve Bank of Philadelphia. We will monitor currency strength while keeping a close eye on consumer price indices across various countries to gauge the direction of inflation trends.
Author: Keisuke Sakurai
