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 previous day’s U.S. currency trading, the market faced resistance as the yield on the 10-year U.S. Treasury note edged down slightly 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 continues to show a downtrend along the 10-day moving average (MA), we maintain a bearish outlook until the pair breaks above 1.0088, which is near the 20-day MA.
European currencies continued to weaken as the euro faced selling pressure following the release 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 EUR/GBP pair fell from 0.8484 to 0.8426. As the pair is breaking below the 200-day simple moving average (SMA) on the daily chart, we will be watching closely to see if the downtrend continues.
Today, during Asian trading hours at 15:00, UK GDP, industrial production, and trade balance figures will be released, along with Germany’s consumer price index; at 15:45, France’s consumer price index will be released; and during European trading hours at 18:00, the Eurozone’sIndustrial 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: Canada’s BOC Governor Macklem press conference, at 26:00: U.S. 30-year Treasury auction, and at 27:00: U.S. Federal Reserve Beige Book.Today’s U.S. CPI is expected to come in at 8.8% year-over-year. We will be watching to see if the actual figure exceeds this forecast.
Author: Keisuke Sakurai
