Concerns Over Further Declines in the U.S. Dollar Following a Drop in U.S. CPI
16.05.2024
- U.S. Housing Starts
- Norway: Real GDP
In yesterday’s U.S. currency trading, the U.S. dollar fell following the release of the April Consumer Price Index (CPI), which showed a 0.1-point year-over-year decline to 3.4% from the previous month’s 3.5%. 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 gained against the U.S. dollar following yesterday’s release of March industrial production data, which showed a year-over-year decline of 1.0%, an improvement from the previous month’s 6.4% drop.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 price 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, and remarks by German Bundesbank President Nagel at 20:30.at 9:30 PM, U.S. import/export price indices, the 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 U.S. CPI.
Author: Keisuke Sakurai
