Will the market wait and see how the dollar moves ahead of the U.S. CPI release?
10.09.2024
- Germany's Consumer Price Index
- Remarks by U.S. Federal Reserve Board Member Bar
In yesterday’s U.S. currency trading, the U.S. dollar fell against the yen ahead of tomorrow’s U.S. CPI release. The USD/JPY pair rose from 141.963 to 143.795. It rebounded from the -2σ to the +2σ levels of the hourly Bollinger Bands. On the 4-hour chart, the pair has already returned to the Bollinger Band midline, and on the daily chart, the RSI has recovered to 37.Ahead of tomorrow’s U.S. CPI release, we should first pay close attention to comments from key figures during U.S. trading hours.
European currencies weakened, with the euro falling against the U.S. dollar ahead of today’s German CPI release. The euro/dollar pair fell from 1.1090 to 1.1030, entering a downtrend along the 10-period moving average (MA) on the hourly chart. On the 4-hour chart, the price has dropped to near the 200-period exponential moving average (EMA), and on the daily chart, it has already broken below the 20-period MA. We will need to monitor the direction closely to see if the euro continues to weaken against the U.S. dollar.
Today’s schedule includes New Zealand Manufacturing Activity at 7:45, Japan’s Money Supply at 8:50, Australia’s Westpac Consumer Confidence Index at 9:30, the Philippines’ Trade Balance at 10:00, Australia’s NAB Business Conditions Index at 10:30, Malaysia’s Industrial Production at 13:00,at 3:00 PM, Norway’s Consumer Price Index, Germany’s Consumer Price Index, the UK’s ILO Unemployment Rate, and the UK’s Employment Statistics; at 4:00 PM, Turkey’s Industrial Production; at 8:00 PM, South Africa’s Manufacturing Output; at 9:10 PM, remarks by BOC Governor Maclean; and at 11:00 PM, remarks by Fed Governor Barr.I plan to closely monitor the US dollar’s price movements on the day before the US CPI release.
Author: Keisuke Sakurai
