Market participants may be on alert for volatility caused by the release of the U.S. July CPI
10.08.2022
- U.S. Consumer Price Index (CPI)
- U.S. Fiscal Balance
The previous day, the U.S. dollar rose slightly against the pound, with the GBP/USD exchange rate falling from 1.2130 to 1.2061.The U.S. Small Business Optimism Index for July, released yesterday, came in at 89.9, up 0.4 points from the previous month. Although it fell short of the average of 98, the impact on the U.S. dollar was limited. Technically, the GBP/USD pair continues to be in a downtrend, rebounding from the 75-day moving average on the daily chart. Since there is room to fall further toward the recent low of 1.2003, caution is warranted regarding a potential decline.
European currencies edged slightly higher against the U.S. dollar, with the EUR/USD pair rising by just under 60 pips from 1.0188 to 1.0247.We are seeing a slight rise during today’s Asian session as well, and the pair is currently attempting to climb toward the 1.0215 level. Since the EUR/USD has been trading in a range since July 19, there is a high probability that today’s U.S. CPI release will trigger a breakout in one direction or the other. We should pay close attention to price movements following the release of this economic indicator.
Today’s schedule includes the German Consumer Price Index at 15:00 (Asia time), the Turkish unemployment rate at 16:00 (Europe time), the U.S. MBA Mortgage Applications Index at 20:00 (Europe time), the U.S. Consumer Price Index at 21:30 (U.S. time), U.S. Wholesale Inventories at 23:00 (U.S. time), U.S. Weekly Crude Oil Inventories at 23:30 (U.S. time), and remarks by U.S. Federal Reserve Bank of Chicago President Evans at 24:00 (U.S. time):Chicago Fed President Evans’ remarks, at 02:00 AM the US 10-year Treasury auction, at 03:00 AM US Kashkari: Minneapolis Fed President’s remarks, and the US budget balance. We should remain highly vigilant for significant price fluctuations from European to US trading hours.
Author: Keisuke Sakurai
