Despite a decline in the U.S. CPI, should we be wary of the direction of the U.S. dollar against the yen?
13.03.2025
- Remarks by Nagel, President of the German Federal Bank
- U.S. 30-Year Treasury Auction
In the U.S. currency market yesterday, the U.S. dollar rose against the yen despite the fact that the U.S. February Consumer Price Index (CPI), released yesterday, fell by 0.2 percentage points year-over-year to 2.8% from the previous month’s 3.0%. The USD/JPY pair recovered from 147.583 to 147.180.It broke above the resistance level of the 200-period simple moving average (SMA) on the hourly chart. On the 4-hour chart, the RSI rose from 42 to 63. On the daily chart, the pair rebounded after touching the -2σ level of the Bollinger Bands.
Among European currencies, the euro rose against the U.S. dollar.The euro rose against the U.S. dollar from 1.0875 to 1.0929. Price action was seen moving across the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the uptrend continues, supported by the 20-period MA, and on the daily chart, the euro has risen for three consecutive days. We will need to watch for any potential correction in the euro heading into the weekend.
Today’s economic indicators include the UK RICS House Price Index at 9:01, Swiss Producer Import Prices at 16:30, and EurozoneIndustrial Production, at 21:30: Canada’s Housing Starts, U.S. Initial Jobless Claims, and U.S. Producer Price Index, at 23:30: U.S. Weekly Natural Gas Inventories, at 26:00: U.S. 30-Year Treasury Auction,at 26:30, remarks by German Bundesbank President Nagel; and at 6:30 the following day, New Zealand Manufacturing PMI. Even though U.S. CPI has declined, we should pay close attention to the direction of the U.S. dollar against the yen.
Author: Keisuke Sakurai
