Caution Over Upside Potential for the U.S. Dollar Following Rise in U.S. CPI?

Caution Over Upside Potential for the U.S. Dollar Following Rise in U.S. CPI?

13.03.2024

In the U.S. currency market yesterday, the U.S. dollar rose against the yen after the U.S. February Consumer Price Index (CPI), released yesterday, showed a year-over-year increase of 3.2%, up 0.1 percentage points 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 200-period simple moving average (SMA) on the daily chart, 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 figures for Germany’s February Consumer Price Index (CPI), released yesterday, came in at 2.5% year-over-year—the same as the previous month.The euro/yen 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 euro/yen has rebounded after finding support at the 75-period moving average (MA) on the daily chart, so it will be worth watching whether the euro continues to gain ground during European trading hours.

Today’s economic indicators include UK GDP, UK industrial production, and the UK trade balance at 16:00; Hungarian industrial production at 16:30; Eurozone industrial production at 19:00; the U.S. MBA Mortgage Applications Index and the Israeli trade balance at 20:00;at 23:30: U.S. weekly crude oil inventories; at 24:00: Brazil’s consumer confidence index and Canada’s consumer confidence index; at 25:00: Russia’s consumer price index; and at 26:00: the U.S. 30-year Treasury auction.We will cautiously monitor the upside potential of the U.S. dollar, which has risen on the back of the U.S. CPI.