All eyes are on whether the U.S. CPI will exceed the forecast of 8.8%
13.07.2022
- Canada: BOC Policy Rate and Statement Release
- U.S. Consumer Price Index
In the U.S. currency market the previous day, the upside was weighed down by a slight pullback in the U.S. 10-year Treasury yield to 2.98%. The EUR/USD pair, which had been expected to break below parity, rebounded from a low of 1.0000 and rose to 1.0071.However, since the 4-hour chart still shows a downtrend along the 10-period moving average (MA), we will maintain a bearish outlook until the pair breaks above 1.0088, which is near the 20-period MA.
European currencies continued to trade weakly as the euro came under pressure following the release yesterday of Germany’s July ZEW Economic Sentiment Index, which came in at -53.8—a significant deterioration from the market forecast of -40.0.The euro/pound pair fell from 0.8484 to 0.8426. As it is breaking below the daily 200-day SMA, we will be watching closely to see if the decline continues.
Today, during Asian trading hours at 15:00, the UK will release GDP, industrial production, and the trade balance, along with Germany’s consumer price index; at 15:45, France will release its consumer price index; and during European trading hours at 18:00, the EU will releaseIndustrial Production, at 21:30 during U.S. trading hours: U.S. Consumer Price Index; at 23:00: Canada’s BOC policy rate and statement; at 23:30: U.S. weekly crude oil inventories;at 24:00, a press conference by BOC Governor Macleam; at 26:00, a U.S. 30-year Treasury auction; and at 27:00, the U.S. Federal Reserve’s Beige Book.Today’s U.S. CPI is expected to come in at 8.8% year-over-year. We’ll be watching to see if the actual figure exceeds this forecast.
Author: Keisuke Sakurai
