Can the CPI Release Reverse The USD? 

Can the CPI Release Reverse The USD? 

2023-09-13 • Updated

The upcoming August inflation data may send mixed signals. The 12-month headline inflation rate is expected to rise to 3.6%, causing concerns for the Biden administration. However, core inflation, which excludes food and energy prices, is projected to decrease to 4.3%, aligning with the Federal Reserve's goals. Past price trends influence both figures, so looking at recent data for a more accurate picture is crucial. In this context, the headline number may show a significant 0.6% increase, driven by higher energy prices. Meanwhile, core inflation is expected to grow steadily by 0.2%, indicating a gradual moderation of inflation.

US Dollar - H4 Timeframe

UsDollarH4-1209.png

Currently, the 4-hour timeframe of the US dollar index shows the price reacting away from a pivot zone on the Daily timeframe. Considering that the US Dollar's momentum seems to have slowed down considerably over the past few days, it seems quite clear that the price intends to reverse and go bearish for a while from the current area.

Analyst’s Expectations: 

Direction: Bearish

Target: 103.751

Invalidation: 105.142

EURUSD - H4 Timeframe

EURUSDH4-1209.png

EURUSD, at the moment, may be heading bullish. The current price action is a rejection from a demand zone on the daily timeframe, which has already given off a change-of-character on the 4-hour timeframe. On this basis, my sentiment is bullish unless the price trails below the current lower prior to the release of the CPI data.

Analyst’s Expectations: 

Direction: Bullish

Target: 1.07808

Invalidation: 1.06835

GBPUSD - D1 Timeframe

GBPUSDDaily-1209.png

The Daily timeframe of GBPUSD presents the clearest argument for a bullish move I’ve seen so far. Here, we see the 200-period moving average support, the drop-base-rally demand order block, as well as a bullish array of the moving averages, pointing clearly to the likelihood of a bullish impulse from the demand zone. As always, before taking any trades, I will wait for an entry trigger from the lower timeframes.

Analyst’s Expectations: 

Direction: Bullish

Target: 1.26097

Invalidation: 1.24417

CONCLUSION

The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.

TRY TRADING NOW

You can access more trade ideas and prompt market updates on the telegram channel.

Similar

Can USD Recover?
Can USD Recover?

The EUR/USD pair is making gains, approaching multi-month highs around 1.0960, driven by a weakened USD and Christine Lagarde's somewhat hawkish remarks before the European Parliament. Minor housing data from the U.S., specifically New Home Sales for October, came in below expectations but didn't significantly impact the pair. Lagarde, President of the...

CPI Release Will Boost The CAD
CPI Release Will Boost The CAD

Canada's forthcoming Consumer Price Index (CPI) data, set for release on Tuesday, is projected to show a year-on-year decline in inflation to 3.2% for October from the previous 3.8%. This potential inflation dip might offer leeway for the Bank of Canada (BoC) to maintain its overnight rate target at 5.0% in the...

Can JPY Reach New Lows By the End of 2023? 
Can JPY Reach New Lows By the End of 2023? 

Speculation persists regarding the Bank of Japan's potential departure from negative interest rates, yet the USD/JPY maintains its position within a 150–152 range for seven consecutive sessions. Caution is warranted due to a weaker-than-expected Q3 GDP, a slump in imports, and...

Latest news

Is Bitcoin Set to Drop?
Is Bitcoin Set to Drop?

Bitcoin's price remains stagnant despite the Fed's slightly less hawkish tone. In contrast, Bitcoin has outperformed other assets, doubling in price from $16K to nearly $38K this year. Improved fundamentals, including the resolution of Binance concerns...

Top Three Trade Ideas for December 2023
Top Three Trade Ideas for December 2023

Hey folks, it’s a wrap to yet another month in the 2023 calendar, and I’m guessing you know what that means - time for another episode in the “What To Trade” series. For December, I will be mapping out trade more cautiously as the market volatility often drops

Gold Breaks To New Highs. What Is Expected In December?
Gold Breaks To New Highs. What Is Expected In December?

Gold prices, reaching the highest since May 5, are consolidating as traders await the US PCE Price Index, a key inflation indicator. The upcoming data could impact the Fed's policy, influencing the demand for the US Dollar and providing direction for gold. The Greenback sees some repositioning, recovering modestly ahead of the data risk.

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera