The US Currency Correcting after a Sharp Rise


An unexpected rise in the US consumer price index contributed to the resumption of the upward trend in the US dollar. Thus, experts predicted a monthly growth of 0.2% and an annual increase of 2.9%, in reality the monthly figure increased by 0.3%, and on an annualized basis this is 3.1%. Such data could not but please greenback buyers. After all, a change in the vector of monetary policy given the current indicators and the existing situation on the labour market in the United States is hardly possible in the near future.


The rise in inflation in the US contributed to the return of the USD/JPY pair above 150.00. The price on the USD/JPY chart set a new yearly high at 150.80, after which it entered a consolidation phase between 150.80 and 150.20. If the upper limit of the specified range is broken, the price may resume growth in the direction of last year’s highs near 152.00. A move below 150.00 may contribute to the start of a larger downward correction in the direction of 148.00-146.00.

Today at 16:30 GMT+3, data on weekly applications for unemployment benefits in the United States will be released. Also at the same time, the core US retail sales index for January will be published, as well as the manufacturing activity index from the Philadelphia Fed for February.


The growth of oil prices and positive fundamental data from the United States allowed buyers of the US dollar/loonie pair to move above the alligator lines on the daily and weekly timeframes.

If the range on the USD/CAD chart 1.3500-1.3470 confirms the support status, the price may resume growth in the direction of 1.3800-1.3600. We can consider cancellation of the upward scenario if there is a confident strengthening below 1.3300-1.3200.

From the point of view of fundamental analysis, today at 16:30 GMT+3, it is worth paying attention to the publication of sales data in the Canadian manufacturing sector for December.


Despite rising inflation in the US and weak fundamental data from the UK, pound buyers managed to keep the price above the significant level of 1.2500. The GBP/USD chart shows that last week’s low has not yet been updated, the probability of a repeated approach to 1.2700 is quite high.

Today at 10:00 GMT+3, we are waiting for UK GDP data for the fourth quarter. Also at the same time, the volume of construction in the UK for December last year will be published.

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.

Latest from Forex Analysis

EUR/USD Price Forms Bullish Reversal Amid Key News GBP/USD Rate Surges to Two-Month High After Inflation News Market Analysis: GBP/USD Climbs Steadily While EUR/GBP Struggles Commodity Currencies Retreat from Local Highs Market Analysis: AUD/USD and NZD/USD Set Sights on Additional Upside

Latest articles

Forex Analysis

EUR/USD Price Forms Bullish Reversal Amid Key News

Last night, the FOMC meeting minutes were released. According to USNews, there were no major surprises. However, the confirmation of persistent inflation – along with hints that some officials discussed potential future rate hikes – displayed a "hawkish" stance. The dollar index


After Earnings Report, NVDA Stock Price Exceeds $1,000

For the first time in history, Nvidia's stock price has reached a four-digit number, and its market capitalisation has surpassed $2.5 trillion, ranking third globally after Microsoft and Apple. This surge is due to a strong earnings report, driven

What Is the 80-20 Rule (Pareto Principle) in Trading?
Trader’s Tools

What Is the 80-20 Rule (Pareto Principle) in Trading?

In trading, rules that could maximise efficiency are highly sought after. One such principle is the 80-20 rule, also known as the Pareto principle. This concept asserts that 80% of outcomes often stem from 20% of causes. In software development,

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.