With tomorrow’s U.S. CPI release approaching, all eyes are on the U.S. dollar to see if there will be any changes in its price movements.
14.05.2024
- Switzerland – Producer Import Prices
- UK Employment Statistics
In the U.S. currency market yesterday, the U.S. dollar rose during U.S. trading hours ahead of today’s release of the U.S. Producer Price Index (PPI). The USD/JPY pair rose after U.S. Treasury Secretary Yellen stated that a cautious stance should be taken regarding currency intervention by major countries. It broke through the key 156-yen level from 155.504 and rose to 156.293.On the 4-hour chart, the 20-period moving average (MA) is firmly acting as a support level, so we should watch for further gains during U.S. trading hours.
Despite the release of Germany’s March current account balance yesterday, which fell to €27.6 billion from €29.8 billion the previous month, the euro rose against the yen.The EUR/JPY pair rose from 167.505 to 168.668. A band walk along the +2σ line of the hourly Bollinger Bands was observed. On the 4-hour chart, a trend is developing along the 10-period moving average (MA). We will keep a close eye on whether the euro continues to rise against the yen.
Today’s schedule includes Japan’s domestic corporate goods price index at 8:50, Germany’s consumer price index, the UK’s ILO unemployment rate, and the UK’s employment statistics at 15:00, Switzerland’s producer import prices at 15:30, remarks by MPC member Pill at 16:30, and Germany’sZEW Economic Sentiment Index, and the Eurozone ZEW Economic Sentiment Index; at 6:30 PM, South African employment data; at 7:00 PM, the U.S. NFIB Small Business Optimism Index; at 9:30 PM, Canadian wholesale sales and the U.S. Producer Price Index; at 10:10 PM, remarks by U.S. Federal Reserve Governor Cook; and at 11:00 PM, remarks by U.S. Federal Reserve Chair Powell.Ahead of tomorrow’s U.S. CPI release, we’ll be watching today’s PPI data for any signs of a shift in the U.S. dollar’s price action.
Author: Keisuke Sakurai
