All eyes are on whether the release of U.S. CPI data will cause significant shifts in currency strength
11.07.2024
- U.S. Consumer Price Index
- Germany's Consumer Price Index
In yesterday’s U.S. trading session, the U.S. dollar rose against the yen ahead of today’s U.S. CPI release. The USD/JPY pair climbed from 161.246 to 161.803. The rise was supported by the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the pair is trading above the 10-period MA, and on the daily chart, the 10-period MA is acting as support, leading to a rebound. Therefore, we should remain vigilant for significant price movements following the U.S. CPI release.
Among European currencies, the Swiss franc fell against the U.S. dollar. The USD/CHF pair rose from 0.8964 to 0.9001, rebounding from below the 20-period moving average (MA) on the hourly chart to above it. On the 4-hour chart, the 200-period simple moving average (SMA) is acting as a support level, while on the daily chart, the pair is rebounding off the 200-period exponential moving average (EMA). We will be watching closely to see if the Swiss franc continues to weaken against the U.S. dollar.
Today’s schedule includes the UK RICS House Price Index at 8:01, Japan’s Machinery Orders at 8:50, Germany’s Consumer Price Index, the UK’s Monthly GDP, UK Industrial Production, UK Trade Balance, and Germany’s Consumer Price Index at 15:00, South Africa’s Manufacturing Orders at 20:00, Brazil’s Retail Sales at 21:00,at 9:30 PM, the US Consumer Price Index and Initial Jobless Claims; at 11:30 PM, remarks by Bostic, President of the Atlanta Fed; at 2:00 AM, the US 30-year Treasury auction; and at 7:30 AM the following day, the NZ Manufacturing PMI. We will be closely watching to see if the US CPI release causes significant shifts in currency strength.
Author: Keisuke Sakurai
