All eyes are on whether the CPI will affect the upside potential of the rising U.S. dollar

All eyes are on whether the CPI will affect the upside potential of the rising U.S. dollar

10.10.2024

In yesterday’s U.S. currency markets, the dollar emerged as the strongest currency during U.S. trading hours, despite the release of the FOMC minutes revealing that a majority of members supported a significant 50-basis-point rate cut.The EUR/USD pair fell from 1.0980 to 1.0935. It declined as it encountered resistance at the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, it is in a downtrend along the 10-period MA, and on the daily chart, it has already broken below the 75-period MA support line.

European currencies rose against the yen as Germany’s August trade balance, released yesterday, came in at €22.5 billion—up from €16.8 billion the previous month—and exceeded market expectations.The EUR/JPY pair rose from 162.388 to 163.467, moving in line with the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the 10-period MA is acting as support, while on the daily chart, the pair is in the process of breaking above the resistance line formed by the 200-period exponential moving average (EMA).

Today, at 8:50 AM, Japan’s domestic corporate goods prices and foreign/domestic securities investment will be released; at 3:00 PM, Norway’s consumer price index; at 4:00 PM, Turkey’s employment statistics and industrial production; at 8:30 PM, the ECB will publish the minutes of its Governing Council meeting; at 9:00 PM, Brazil’s retail sales;at 9:30 PM, U.S. Consumer Price Index and Initial Jobless Claims; at 10:15 PM, remarks by Fed Governor Cook; at 10:30 PM, remarks by Richmond Fed President Barkin; and at 2:00 AM, a U.S. 30-year Treasury auction. We will be closely watching to see if the CPI data changes the upside potential for the rising U.S. dollar.