Will Germany's Consumer Price Index (CPI) exceed the previous reading of 7.6%?
28.07.2022
- Germany's Consumer Price Index
- U.S. Core PCE Deflator
On the previous day, U.S. currencies saw a "sell-the-fact" reaction after the FOMC meeting concluded without any surprises, and GBP/USD rose by approximately 160 pips from 1.2021 to 1.2186.The Fed raised rates by 0.75% as it did at the previous meeting, resulting in a smooth FOMC meeting that aligned with market expectations. Furthermore, since GBP/USD has broken above the 200-period SMA on the 4-hour chart with a real body, if the upward trend continues, we would like to target the 75-period MA on the daily chart at 1.2341.
European currencies traded in a range against the yen, as the German GfK Consumer Confidence Index for August, released yesterday, came in below expectations at -30.6, while the pound and Swiss franc held firm.During today’s Asian session, a yen-buying trend has emerged, with the pair falling more than 150 pips from 139.493 to 137.915. Since EUR/JPY has already broken below the daily 75-day moving average, we will be watching closely to see if it breaks below the recent low of 136.864 and continues its decline.
Today, the French Producer Price Index is scheduled for 15:45 during Asian trading hours, followed by the Turkish Economic Sentiment Index at 16:00 during European trading hours, the German Consumer Price Index at 21:00, and the U.S. Initial Jobless Claims and U.S. Second-Quarter GDP (flash estimate) at 21:30 during U.S. trading hours,U.S. personal income, U.S. core PCE deflator, U.S. weekly natural gas inventories at 23:30, the U.S. Kansas City Fed Manufacturing Activity Index at 24:00, and a U.S. 7-year Treasury auction at 26:00. Following the close of U.S. markets, Apple and Amazon are scheduled to report their earnings. We will be closely monitoring price movements depending on the results to see if Germany’s CPI has peaked.
Author: Keisuke Sakurai
