The US Currency Correcting after a Sharp Rise

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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.

USD/JPY

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.

USD/CAD

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.

GBP/USD

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.

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