Market participants are likely to keep a close eye on the downside potential of the U.S. dollar following the release of U.S. PPI data

Market participants are likely to 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 yesterday’s U.S. currency trading, the U.S. dollar fell slightly against the yen after the August U.S. Producer Price Index (PPI) released yesterday showed a year-over-year increase of 1.7%, down from 2.2% the previous month, while the core index (excluding food and energy) remained at 2.4%. The USD/JPY pair fell from 143.039 to 141.720, declining from the vicinity of the 75-period moving average on the hourly chart.On the daily chart, the pair is facing resistance at the 10-day moving average, 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 climbed 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 price rebounded from the -2σ line of the Bollinger Bands, and similar price action was seen on the daily chart. We will need to assess carefully 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 at 6:00 p.m., the EU’sIndustrial Production at 18:30, remarks by ECB President Lagarde at 18:30, Canadian Wholesale Sales and U.S. Import/Export Price Index 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 following its decline after the release of the U.S. PPI.