Market participants may be wary of the upside potential for the U.S. dollar following the release of U.S. CPI data

Market participants may be wary of the upside potential for the U.S. dollar following the rise in the U.S. CPI

13.03.2024

In yesterday’s U.S. currency trading, the U.S. dollar rose against the yen after the U.S. February Consumer Price Index (CPI), released yesterday, showed a 0.1-point year-over-year increase to 3.2% from the previous month’s 3.1%. The USD/JPY pair rose from 146.612 to 148.176, recovering to the 75-period moving average (MA) on the hourly chart.From a technical perspective, since there is a support line just below the USD/JPY’s daily 200-day SMA, we will be watching closely to see if the US dollar’s rally continues during US trading hours.

European currencies rose against the yen as the final reading of Germany’s February Consumer Price Index (CPI), released yesterday, came in at 2.5% year-on-year, unchanged from the previous month.The EUR/JPY pair rose from 160.270 to 161.560, extending its gains to just below the 200-period simple moving average (SMA) on the 4-hour chart. From a technical perspective, the EUR/JPY has rebounded with support from the 75-period moving average (MA) on the daily chart, so it will be worth watching whether the euro continues to strengthen during European trading hours.

Today's economic indicators include UK GDP, UK industrial production, and the UK trade balance at 4:00 PM; Hungarian industrial production at 4:30 PM; EurozoneIndustrial Production at 19:00, the US MBA Mortgage Applications Index and Israel’s Trade Balance at 20:00, US Weekly Crude Oil Inventories at 23:30, Brazil’s Consumer Confidence Index and Canada’s Consumer Confidence Index at 24:00, Russia’s Consumer Price Index at 25:00, and the US 30-Year Treasury Auction at 26:00.We will closely monitor the upside potential of the US dollar, which has risen on the back of the US CPI.