Investors should keep an eye on the movement of the U.S. dollar, as the year-over-year core PPI in the U.S. fell by 0.2 percentage points

Investors should keep an eye on the movement of the U.S. dollar, as the year-over-year core PPI in the U.S. fell by 0.2 percentage points

15.01.2024

Last weekend, the U.S. dollar weakened against all currencies after the U.S. December Producer Price Index (PPI), released on the 12th, showed a year-over-year increase of 1.0%, up 0.1 percentage points from the previous month’s 0.9%, while the core year-over-year rate fell to 1.8% from 2.0% the previous month. The USD/JPY pair fell from 145.562 to 144.354.The decline halted upon touching the 200-period SMA on the hourly chart. However, as the Dollar Index has recovered to 102.4, we should pay close attention to price movements during European trading hours.

European currencies fell against the yen after France’s December Consumer Price Index (CPI), released last Friday, remained unchanged from the previous month at 3.7% year-on-year.The EUR/JPY pair fell from 159.570 to 158.545. On the higher timeframe weekly chart, the EUR/JPY has retraced from the -2σ Bollinger Band to the 20-day moving average (MA) at the centerline, so we will closely monitor whether the euro recovers against the yen at the start of the week.

Today’s economic indicators include Japan’s M2 money supply at 8:50, the UK’s Rightmove house prices at 9:00, Indonesia’s trade balance at 13:00, India’s wholesale price index at 15:30, Sweden’s consumer price index at 16:00, and at 19:00, the EU’sIndustrial Production and EU Trade Balance, 8:00 PM for Israel’s Unemployment Rate, and 10:30 PM for Canada’s Wholesale Sales and Manufacturing Sales. We will closely monitor the movement of the US dollar following the 0.2-point year-over-year decline in the US Core PPI.

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