All eyes are on whether the U.S. dollar will strengthen following the release of the University of Michigan Consumer Sentiment Index

All eyes are on whether the U.S. dollar will strengthen following the release of the University of Michigan Consumer Sentiment Index

12.05.2023

In the U.S. currency market yesterday, the U.S. dollar rose against the euro after the U.S. April Producer Price Index, released yesterday, came in at 2.3% year-over-year, marking its 10th consecutive monthly decline.The EUR/USD pair fell by just under 100 pips from 1.0997 to 1.0900, breaking below the daily 20-day moving average. The daily RSI for EUR/USD has been declining following a divergence near the 70 level, and the 4-hour RSI still has room to fall toward 30. We should watch closely to see if further declines in EUR/USD will occur following the release of economic indicators during U.S. trading hours.

Among European currencies, the Swiss franc fell against the U.S. dollar. The USD/CHF pair rose by approximately 808 pips, from 0.8873 to 0.8957, and broke above the 20-period moving average (MA) on the 4-hour chart. On the daily chart, which is a higher timeframe, the USD/CHF has broken above the 20-period MA and is trending higher, with successive higher lows. We will be watching closely to see if the Swiss franc’s strength will pause and allow the U.S. dollar to stage a comeback.

Today’s schedule includes UK Q1 GDP, UK industrial production, UK manufacturing output, and UK trade balance at 3:00 PM; France’s Consumer Price Index at 3:45 PM; remarks by Fed Governor Bowman at 4:00 PM; remarks by MPC member Pill at 8:15 PM; India’sCPI, at 9:30 PM the US Import/Export Price Index, at 11:00 PM the US University of Michigan Consumer Sentiment Index, and at 3:20 AM remarks by US Federal Reserve Bank of San Francisco President Daly. I intend to watch the situation carefully to see if the US dollar strengthens following the release of these US-time indicators.

Past Market Reports

1. 21.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

2. 20.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

3. 17.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

4. 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

5. 15.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

6. 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

7. 13.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

8. 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?

9. 09.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

10. 08.04.2026

    Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran