The Dollar Remains Firm; Will It Test Higher Levels Following the U.S. CPI Release?
12.05.2026
- Germany and Eurozone May ZEW Economic Sentiment Survey
- U.S. April Consumer Price Index (CPI)
In the U.S. currency market the previous day, the U.S. dollar held steady amid fading hopes for a ceasefire in the Middle East and growing concerns over inflationary pressures driven by rising crude oil prices.The USD/JPY pair fluctuated within a range of 156.45 to 157.28 before closing near 157.24, with concerns about potential currency intervention by Japanese authorities still lingering.The immediate focus is on whether the pair can hold near 157.00; resistance is likely to be seen around 157.30 to 157.50, while support is likely to be found around 156.50 to 156.00. We will be watching today’s U.S. CPI release to see if it provides a clearer direction for the U.S. dollar.
European currencies were weighed down by the US dollar’s strength, causing the euro to trade with some resistance on the upside against the dollar. The euro/dollar pair traded within a range of 1.1748 to 1.1792 before closing near 1.1779.Resistance near the 1.1800 level is likely to be a key factor, while on the downside, the focus will be on whether the 1.1750 to 1.1720 range acts as support.With the release of the German and Eurozone ZEW Economic Sentiment Surveys scheduled for today, we will be watching to see if the outlook for the European economy provides support for the euro.
Today’s key economic indicators include Germany’s April Consumer Price Index (CPI, revised) at 15:00, Switzerland’s April Producer Price Index (PPI) at 15:30,the Eurozone May ZEW Economic Sentiment Survey and the German May ZEW Economic Sentiment Survey at 18:00, the U.S. April Consumer Price Index (CPI) at 21:30, and the U.S. April Monthly Fiscal Balance at 27:00.The U.S. CPI is expected to rise to 0.6% month-over-month and 3.7% year-over-year, while core CPI is projected to increase by 0.3% month-over-month and 2.7% year-over-year.U.S. inflation indicators tend to significantly influence U.S. interest rate outlooks, particularly during New York trading hours, so it is important to carefully monitor the reactions of the U.S. dollar, the euro, and the yen.
Author: Keisuke Sakurai
