All eyes are on whether the release of the U.S. PCE deflator will signal a shift in market sentiment

All eyes are on whether the release of the U.S. PCE deflator will signal a shift in market sentiment

20.12.2024

In the previous day’s U.S. currency trading, the U.S. dollar rose against the Japanese yen following the FOMC meeting. The USD/JPY pair rose from 154.438 to 157.795. An uptrend developed along the 10-period moving average on the hourly chart. On the daily chart, the candlesticks extended to the +3σ level of the Bollinger Bands, and on the weekly chart, the RSI—which had been trending downward—recovered from 48 to 60.

Among European currencies, the euro traded sideways against the U.S. dollar.The EUR/USD pair traded between 1.0347 and 1.0421. Prices remained range-bound just below the 20-period moving average on the hourly chart. On the 4-hour chart, the RSI is stuck around the 30 level, while on the daily chart, the pair is attempting to rebound from near the -3σ level of the Bollinger Bands. We will be watching to see if the euro rebounds against the US dollar during US trading hours.

Today’s schedule includes Japan’s Consumer Price Index at 8:30, Malaysia’s Consumer Price Index at 13:00, UK Retail Sales and UK Public Sector Net Debt at 16:00, Germany’s Producer Price Index and Turkey’s Consumer Confidence Index at 16:45, France’s Producer Price Index at 17:30, and Hong Kong’s Current Account Balance at 17:30.at 7:30 PM, the Russian policy rate; at 10:30 PM, U.S. personal income, the U.S. PCE deflator, and remarks by New York Fed President Williams; and at midnight, the Eurozone Consumer Confidence Index and the University of Michigan Consumer Sentiment Index. We will be closely watching the release of the PCE deflator in U.S. time to see if it signals a shift in market sentiment.

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