Should we be wary of the U.S. dollar’s upside potential following the rise in the CPI?

Should we be wary of the U.S. dollar’s upside potential following the rise in the CPI?

12.12.2024

In yesterday’s U.S. currency trading, the U.S. dollar rose against the yen after the U.S. November Consumer Price Index, released yesterday, showed a year-over-year increase of 2.7%, up from 2.6% the previous month. The USD/JPY pair rose from 151.013 to 152.833. It moved upward from below the 20-period moving average (MA) on the hourly chart to above it.On the daily chart, the price has broken above the 200-day SMA, which had been acting as an upper resistance level, so we will be closely monitoring price movements during U.S. trading hours.

Among European currencies, the Swiss franc rose against the yen ahead of today’s SNB policy rate announcement. The CHF/JPY pair climbed from 170.871 to 172.902. On the hourly chart, the price has moved from below the 20-period moving average (MA) to above it.On the 4-hour chart, the RSI has risen from 55 to 64, and on the daily chart, the pair has broken above the 200-day SMA resistance line. We will need to monitor price movements following the policy rate announcement to see if the Swiss franc continues to rise against the yen.

Today’s schedule includes Japan’s foreign and domestic securities investment data at 8:50, the UK’s RICS House Price Index at 9:01, Australia’s employment statistics at 9:30, Turkey’s current account balance at 16:00,Sweden’s Consumer Price Index at 9:30 AM, the SNB policy rate and statement at 5:30 PM, SNB Governor Schlegel’s press conference at 6:00 PM, India’s Consumer Price Index at 7:30 PM, Brazil’s Retail Sales at 9:00 PM,Mexico’s industrial production, 10:15 PM: Eurozone ECB policy rate and statement release, 10:30 PM: U.S. initial jobless claims, U.S. producer price index, Canada’s housing starts, and 10:45 PM: Eurozone ECB President Lagarde’s press conference. We should pay close attention to the upside potential of the U.S. dollar, which has strengthened following the rise in U.S. CPI.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed