Should we keep a close eye on the dollar’s movements ahead of the U.S. CPI release?

Should we keep a close eye on the dollar’s movements ahead of the U.S. CPI release?

12.06.2023

In the U.S. currency markets last weekend, the U.S. dollar rose against the euro. The EUR/USD pair fell from 1.0785 to 1.0732, breaking below the 20-period moving average on the hourly chart. From a technical perspective, the EUR/USD pair has continued to decline during today’s Asian trading session, facing resistance at the 20-period moving average on the hourly chart. We will be closely monitoring the situation to see if the euro recovers during European trading hours.

Among European currencies, the pound rose against the yen. The GBP/JPY pair climbed from 174.278 to 175.542, hitting a new high for the year. While the pair is in a strong uptrend along the daily 10-day moving average, the daily RSI has exceeded 70 and a divergence is evident; therefore, we should remain cautious regarding the direction of the market and watch for a pullback as the market consolidates.

Today’s schedule includes Turkey’s current account balance and unemployment rate at 4:00 PM CET, India’s Consumer Price Index at 9:00 PM CET, a speech by a member of the Bank of England’s Monetary Policy Committee at 11:00 PM EST, a U.S. 3-year Treasury auction at 12:30 AM EST, a U.S. 10-year Treasury auction at 2:00 AM EST, and the U.S. budget balance at 3:00 AM EST.Although there are no major economic indicators scheduled for release today, with the U.S. CPI tomorrow and the FOMC meeting the day after tomorrow on the horizon, we should remain vigilant for sudden spikes in volatility ahead of these key events.

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