All eyes are on whether the U.S. CPI will come in below the market forecast of 7.3%

All eyes are on whether the U.S. CPI will come in below the market forecast of 7.3%

13.12.2022

In the previous day’s U.S. currency markets, a wait-and-see mood prevailed ahead of today’s Consumer Price Index (CPI) release. The euro traded in a range between 1.0505 and 1.0580, ending the session in a stalemate against the dollar. Furthermore, during today’s Asian trading hours, the market direction remains unclear, with traders awaiting the results of the U.S. CPI release.With market expectations for today’s U.S. CPI year-over-year figure at 7.3%, attention will be focused on whether the actual result comes in below this level.

Among European currencies, the euro-pound pair has been trending slightly lower. The euro-pound has fallen from 0.8618 to 0.8573 and is trending downward on the 4-hour chart, with the 75-period moving average capping its upside. With the German ZEW Economic Sentiment Survey scheduled for release today and market expectations at -27.0, we will be watching closely to see if the results exceed market forecasts and trigger a rebound in the euro.

Today, at 16:00 CET, the UK unemployment rate, German CPI, and Turkish industrial production will be released; at 19:00, the German ZEW Economic Sentiment Survey and the Eurozone ZEW Economic Sentiment Survey will be released; and at 19:30, the UKthe BOE Financial Stability Report, at 20:00 UK time a press conference by BOE Governor Bailey and the US NFIB Small Business Optimism Index, and during US trading hours at 22:30 the US Consumer Price Index, followed by a US 30-year Treasury auction at 03:00. We will be watching closely to see if the US CPI falls below 7.3%.