The Dollar Falls Following US Inflation Data Release

FXOpen

Weaker-than-expected US Consumer Price Index (CPI) data released yesterday triggered a downward correction in the US dollar. The USD/JPY pair lost more than 150 points in just a couple of hours, USD sellers in USD/CAD managed to push the price below 1.4400, and European currencies partially recovered earlier-formed reversal patterns for buying.

USD/JPY

On the daily timeframe, the USD/JPY pair has broken out of a three-week consolidation range of 158.40–156.20. If sellers manage to secure the price below the lower boundary of this range, further downward movement towards 154.50–154.00 is possible. A resumption of the upward trend may occur if the price returns above 156.20.

Events likely to influence USD/JPY pricing include:

  • 16:30 (GMT+2): US Core Retail Sales Index
  • 16:30 (GMT+2): Initial Jobless Claims in the US
  • 16:30 (GMT+2): Philadelphia Fed Manufacturing Index (US)

USD/CAD

A retest of the critical resistance level at 1.4450 proved unsuccessful for USD/CAD buyers. The rejection from this level resulted in a 120-point decline, leading the pair back to the 1.4300 zone. Technical analysis of USD/CAD suggests a sideways movement. Currently, the pair could decline to the 1.4300–1.4280 area. If the pair rebounds from this zone, price strengthening towards 1.4450–1.4400 is possible.

Events that may trigger a breakout from the USD/CAD flat range include:

  • 16:15 (GMT+2): Canadian Housing Starts
  • 20:30 (GMT+2): Speech by Bank of Canada Deputy Governor Gravel
  • Tomorrow at 16:30 (GMT+2): Foreign Investment in Canadian Securities

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Forex Trading with FXOpen

Forex Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 50 markets
  • Trade with spreads from 0.0 pips
  • Take advantage of commissions from $1.50/lot
Learn more

Latest articles

Forex Analysis

Market Analysis: EUR/USD Gains Pace While USD/JPY Turns Red

EUR/USD started a decent upward move above the 1.0460 resistance. USD/JPY declined below 153.00 and is currently consolidating losses.

Important Takeaways for EUR/USD and USD/JPY Analysis Today

· The Euro found support and started a

Shares

Warren Buffett Sells Bank Shares

On Friday, Berkshire Hathaway’s 13F filing (a quarterly report required by the U.S. Securities and Exchange Commission from institutional investment managers overseeing more than $100 million in assets) revealed that Warren Buffett’s company:

→ Maintained its Apple (AAPL)

Forex Analysis

AUD/USD Trades Near Year’s High After RBA Decision

Today, the Reserve Bank of Australia (RBA) eased monetary policy, cutting the interest rate from 4.35% to 4.10%, according to Forex Factory.

As reported by Reuters:
→ This marks the first easing since the 2020 pandemic;
→ RBA Governor Michele

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.