Should we keep a close eye on the direction of the U.S. dollar, which is gaining momentum amid expectations of U.S. interest rate hikes?

Should we keep a close eye on the direction of the U.S. dollar, which is gaining momentum amid expectations of U.S. interest rate hikes?

13.06.2022

Last weekend, U.S. currencies rose across the board following the release of the U.S. May Consumer Price Index (CPI), which came in above expectations.The GBP/USD pair fell more than 250 pips from 1.2516 to 1.2262. The price action suggests it may be heading toward last month’s low of 1.2153. Concerns are mounting that the rise in the U.S. CPI from 8.3% the previous month to 8.6% will accelerate the pace of U.S. interest rate hikes.

Like the pound, the euro has been weakening against the U.S. dollar, with the EUR/USD pair falling by approximately 160 pips from 1.0642 to 1.0475. The EUR/USD pair is declining as it faces resistance at the 75-day moving average on the daily chart, and since the RSI has not reached 30 and is hovering around 38.5, we should remain vigilant for further declines following the release of economic indicators.

Today, we have the UK’s industrial production, manufacturing output, and trade balance scheduled for 3:00 PM Asia time; Turkey’s current account balance and industrial production at 4:00 PM Europe time; and remarks by Fed Governor Brainard at 3:00 AM US time. We will be closely monitoring the direction of the US dollar, which has been gaining momentum amid expectations of a US interest rate hike.

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?