Will the U.S. dollar continue to rise following the release of U.S. CPI data, or will the market remain on the sidelines?

Will the U.S. dollar continue to rise following the release of the U.S. CPI, or will the market remain on the sidelines?

11.06.2025

In yesterday's U.S. currency trading, the U.S. dollar rose against the yen ahead of today's release of the U.S. May Consumer Price Index (CPI).The USD/JPY pair rose from 144.397 to 145.287. Price action was seen crossing the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the candlesticks are turning upward while finding support at the 200-period simple moving average (SMA), and on the daily chart, the pair is currently attempting to break above the 20-period MA to reach a new high for the month.

Among European currencies, the euro rose against the pound for the second consecutive day.The EUR/GBP pair rose from 0.8418 to 0.8468, surging to the +3σ level of the hourly Bollinger Bands. On the 4-hour chart, the price has already broken above the upper resistance zone formed by the 200-period SMA with a real body candle, while on the daily chart, the 200-period SMA is acting as a support line, causing the price to rebound. We will be watching for the direction of the market during European trading hours to see if the euro’s rally continues.

Today’s economic indicators include the Japan Corporate Goods Price Index at 8:50, remarks by ECB President Lagarde at 12:15, the U.S. MBA Mortgage Applications Index at 20:00, and Canadian Housing Starts at 21:30.U.S. Consumer Price Index at 21:30, U.S. weekly crude oil inventories at 23:30, U.S. 10-year Treasury auction at 26:00, and U.S. budget balance at 27:00. We will be watching the market reaction following the release of the U.S. CPI to see if the U.S. dollar continues to rise.