Market Participants May Keep a Close Eye on the Downside Potential of the U.S. Dollar Following the Release of U.S. PPI Data

Market Participants May Keep a Close Eye on the Downside Potential of the U.S. Dollar Following the Release of U.S. PPI Data

13.09.2024

In the U.S. currency market yesterday, the U.S. dollar fell slightly against the yen after the U.S. August Producer Price Index (PPI), released yesterday, showed a year-over-year increase of 1.7%—down from the previous month’s 2.2%—while the core index, excluding food and energy, remained steady at 2.4%.The USD/JPY pair fell from 143.039 to 141.720, declining from the vicinity of the 75-period moving average (MA) on the hourly chart. On the daily chart, the pair is facing resistance at the 10-period MA, so traders should pay close attention to price movements during U.S. trading hours.

Among European currencies, the pound rose slightly against the yen. The GBP/JPY pair rose from 185.278 to 186.728. Price action was observed crossing the 20-period moving average on the hourly chart.On the 4-hour chart, the pair rebounded from the -2σ level of the Bollinger Bands, and a similar price movement was observed on the daily chart as well. We will need to carefully assess whether the pound will find support during European trading hours.

Today’s economic indicators include Japan’s industrial production at 1:30 p.m., remarks by German Bundesbank President Nagel at 1:50 p.m., France’s consumer price index at 3:45 p.m., and the Eurozone’sIndustrial Production at 18:30, remarks by ECB President Lagarde at 18:30, Canadian Wholesale Sales and U.S. Import/Export Price Indices at 21:30, Canadian Capacity Utilization at 21:30, and the University of Michigan Consumer Sentiment Index at 23:00.We will be closely monitoring the downside potential for the U.S. dollar, which fell following the release of the U.S. PPI.