All eyes are on whether the CPI will affect the upside potential of the rising U.S. dollar
10.10.2024
- U.S. Initial Unemployment Insurance Claims
- Brazil: Retail Sales
In the foreign exchange market the previous day, the U.S. dollar emerged as the strongest currency during U.S. trading hours, even though the minutes of the FOMC meeting released yesterday revealed that a significant 50-basis-point rate cut had been supported by a majority of members.The EUR/USD pair fell from 1.0980 to 1.0935. It declined after encountering 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 euros—up from 16.8 billion euros 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’s schedule includes Japan’s Domestic Corporate Price Index at 8:50, Japan’s Inbound/inward securities investment at 8:50; the Norwegian Consumer Price Index at 15:00; Turkish employment statistics and industrial production at 16:00; the release of the minutes from the ECB Governing Council meeting at 20:30; Brazilian retail sales at 21:00;at 9:30 PM, the U.S. Consumer Price Index and U.S. Initial Jobless Claims; at 10:15 PM, remarks by U.S. Federal Reserve Governor Cook; at 10:30 PM, remarks by U.S. Richmond Fed President Barkin; and at 2:00 AM, a U.S. 30-year Treasury bond auction.We will be watching closely to see if the CPI data changes the upside potential for the rising U.S. dollar.
Author: Keisuke Sakurai
