Will the CPI Crash the USD?
The most impactful releases of this week will fill the market with volatility and sharp movements. Be ready to take action!
Emerging market updates
- USD/ZAR has been trading near the crossover of 100-day and 200-day SMAs. Today, traders need to pay attention to the State of the Nation (Sona) address where President Ramaphosa is expected to make comments on the future of Eskom. Will the support package be delivered to the South African electricity public utility? Let’s find out at 18:00 MT time. If the rand is supported, bears will push USD/ZAR below the 14.2761 level. The next support will lie at 14.14. If the ZAR weakens, the pair will rise back above the 50-day SMA. Bulls need to push the pair above the 14.47-14.53 levels to restore the uptrend.
- The Turkish lira was hurt by the news that the US considers three sanctions packages. Today, the Turkish president Tayyip Erdogan said that if Washington imposes sanctions, the countermeasures come immediately. On H4, USD/TRY tested the 5.81 level on his comments. Further uncertainties may push the pair above this level to the resistance at 5.84. Bears will keep the 5.7198 and 5.6975 levels in focus. As far as they are broken, the next support will be placed at 5.6606.
- The Singapore dollar has been strengthening since the beginning of the Asian trading session. USD/SGD has fallen below the 100-day SMA. At the moment, it is testing the support at 1.3560. After the break, bears will target the 1.3533-1.3520 levels. Break below this zone will pull the pair lower to the 1.3469 level. From the upside, there is a resistance at 1.3650 (200-day SMA). Next resistance levels are placed at 1.3688 and 1.3719.
Similar
Three Currencies to Watch This Week
We prepared an outlook of major events of this week. Check it and be ready!
The Fed won't miss these releases!
Here you'll find what awaits the market this week, from the CPI release to a possible gold plunge.
Latest news
No More US Debts in Sight
The first day of June should’ve brought us the US default. Unsurprisingly, the US House passes the debt ceiling bill at the latest possible moment.
Gold Rises as Central Banks Buy More
About 24% of global central banks intend to increase gold reserves in 2023. Rising inflation, geopolitical turmoil, and worries about interest rates are reasons to increase gold reserves.
US Evades Default This Time
Greetings to a brand new week full of events, economic releases and US debt frictions. We are here to tell you everything you need to know!
