Market participants may be on alert for volatility caused by the release of the U.S. July CPI

Market participants may be on alert for volatility caused by the release of the U.S. July CPI

10.08.2022

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, GBP/USD continues to be in a downtrend, rebounding from the 75-day moving average, and with 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.A modest rise has also been observed during today’s Asian trading session, and the pair is currently attempting to climb near the 1.0215 level. As the EUR/USD has been trading within 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. Traders 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 U.S. 10-year Treasury auction, at 03:00 AM U.S. Kashkari: Minneapolis Fed President’s remarks, and the U.S. budget balance are scheduled. We must remain highly vigilant for significant price fluctuations from European to U.S. trading hours.

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?