Concerns Over Further Declines in the U.S. Dollar Following a Drop in U.S. CPI

Concerns Over Further Declines in the U.S. Dollar Following a Drop in U.S. CPI

16.05.2024

In yesterday’s U.S. currency markets, the U.S. dollar fell following the release of the April Consumer Price Index (CPI), which showed a year-over-year decline of 0.1 percentage points from the previous month’s 3.5% to 3.4%. The year-over-year core index, excluding food and energy, also fell from 3.8% to 3.6%. The USD/JPY pair dropped from 156.551 to 154.697.The pair has continued to decline during today’s Asian trading session, already falling to 154.164.

European currencies rose as the euro strengthened against the U.S. dollar following yesterday’s release of March industrial production data, which showed a year-on-year improvement from the previous month’s 6.4% decline to a 1.0% decline.The EUR/USD pair rose from 1.0813 to 1.0890. A rebound occurred from the 20-period moving average on the hourly chart. On the 4-hour chart, a band walk along the +2σ line of the Bollinger Bands can be observed, and on the daily chart, the pair has broken above and surpassed last month’s recent high.

Today’s schedule includes Japan’s Q1 GDP and foreign/domestic securities investment at 8:50, Australia’s employment report at 10:30, Japan’s industrial production at 13:30, Norway’s real GDP at 15:00, the Philippines’ BSP overnight lending rate at 16:00, remarks by German Bundesbank President Nagel at 20:30,at 9:30 PM: U.S. Import/Export Price Index, U.S. Philadelphia Fed Business Outlook Index, U.S. Housing Starts, and U.S. Initial Jobless Claims; at 10:15 PM: U.S. Industrial Production; at 11:00 PM: Remarks by U.S. Federal Reserve Vice Chair Bar; and at 1:00 AM: Remarks by U.S. Atlanta Fed President Bostic.We should pay close attention to the downside potential of the U.S. dollar, which has fallen due to the decline in the U.S. CPI.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   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

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   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?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed