All eyes are on the U.S. dollar’s movements following the release of the U.S. July Consumer Price Index
11.08.2022
- U.S. 30-Year Treasury Auction
- U.S. Producer Price Index
U.S. currencies plummeted the previous day after the U.S. Consumer Price Index came in at 8.5% year-over-year, below the market forecast of 8.7%. The EUR/USD pair rose 160 pips from 1.0201 to 1.0368.The EUR/USD broke above its daily range and touched the neckline at 1.0368 before pulling back. On the weekly chart, the RSI is beginning to trend upward, so we will be closely monitoring price movements heading into the weekend.
European currencies faced resistance as the euro struggled to gain ground, dragged down by the U.S. dollar, with the euro/yen pair showing a notable decline among the yen crosses. The euro/yen fell by approximately 180 pips from 138.396 to 136.592.In contrast to USD/JPY, which is attempting to rise during today’s Asian session, EUR/JPY is stagnating near the support level of 136.976. We will be watching price movements heading into the European session to see if the pair will remain stuck in this low range without recovering from yesterday’s decline.
Today, the Norwegian Consumer Confidence Index is scheduled for 3:30 p.m. during Asian trading hours, followed by Turkey’s Current Account Balance at 4:00 p.m. during European trading hours,U.S. Initial Jobless Claims and the U.S. Producer Price Index at 21:30 U.S. time, U.S. Weekly Natural Gas Inventories at 23:30, the U.S. 30-Year Treasury Auction at 26:00, and the New Zealand Manufacturing PMI at 7:30 the following day. With the release of the U.S. July CPI, we will be closely monitoring the direction of the U.S. dollar, which fell in contrast to rising stock prices.
Author: Keisuke Sakurai
