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EUR/USD looks ready to extend a downswing ahead of the U.S. CPI report!
How will the pair react to the news?
Before moving on, ICYMI, yesterday’s watchlist looked at GBP/CHF’s trend pullback ahead of the U.K.’s jobs release. Be sure to check out if it’s still a good play!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
BOE Monetary Policy Committee member Catherine Mann said that services and goods inflation have “a long way to go” before hitting levels consistent with a 2% headline inflation
Japan’s BSI manufacturing index dropped from 5.7 in Q4 2023 to -6.7 in Q1 2024
As expected, Japan’s PPI accelerated from 0.2% y/y to 0.6% y/y in February
Germany’s February CPI confirmed at 0.4% m/m (2.5% y/y) in February
U.K.’s unemployment rate ticked up from 3.8% to 3.9% and Jobless claimants jumped from 3.1K to 16.8K in February; Average wages including bonuses went up by 5.6% y/y in the three months to January, lower than the previous 5.8% y/y reading and forecasts of a 5.7% y/y print
Price Action News
Overlay of JPY vs. Major Currencies Chart by TradingView
With not a lot of fresh catalysts to consider, Bank of Japan Governor (BOJ) Kazuo Ueda’s remarks got a bit more attention among JPY traders.
The BOJ head honcho confirmed that his gang will “consider adjusting the negative rate policy, the yield curve control and other various easing measures” but he also cautioned that there are still weaknesses in the household spending data.
JPY dropped sharply across the board but also steadied near its intraday lows before the start of London session trading. It’s currently seeing its biggest losses against CHF and CAD and its smallest losses against GBP and NZD.
Upcoming Potential Catalysts on the Economic Calendar:
U.S. NFIB small business index at 10:00 am GMT
U.K.’s BOE MPC member Catherine Mann to participate in a panel discussion at 11:00 am GMT
U.S. CPI reports at 12:30 pm GMT
U.K.’s CB leading index at 1:30 pm GMT
BOE Gov. Bailey to give a speech at 4:15 pm GMT
U.S. Federal budget balance at 6:00 pm GMT
New Zealand’s food price index at 9:45 pm GMT
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! ️
EUR/USD 15-min Forex Chart by TradingView
In a few hours, we’ll see the U.S. February CPI report that may move USD pairs around. Will it lead to a new swing low for EUR/USD? Or will today’s market themes extend the pair’s longer-term uptrend? Leave your thoughts in the comments below!
