Partner Center
Find a Broker
Traders dropped the dollar like it was hot last week. Can this week’s catalysts inspire some retracement?
CPI (Mar 11, 12:30 pm GMT)
- Consumer price growth slowed down from 0.2% to 0.1% in January despite higher costs of shelter, food, and medical care services
- COVID-19 fears dominated price action then, so USD still gained across the board
- Markets see the headline CPI at 0.0% in February
- Core CPI is expected to maintain its 0.2% reading
PPI (Mar 12, 12:30 pm GMT)
- Headline and core PPI came in at 0.5% in January when traders only saw 0.1% increases for both reports
- Analysts estimate a 0.1% dip in headline PPI while core PPI could slow down to 0.2%
Market risk sentiment
- USD fell like a rock last week. Look out for potential retracements especially on any optimistic news concerning COVID-19
- Unless Fed members give speeches that hint at further easing, it’s likely that COVID-19 and global growth concerns could once again boost the dollar
- Major calendar releases, such as ECB’s policy decision and China’s CPI can also affect the demand for the safe havens
Technical snapshot
- USD has lost pips to all its major counterparts except CAD in the last 7 days
- USD/JPY, USD/CHF, AUD/USD, and NZD/USD are trading below their short AND long-term EMAs on the daily time frame
- EUR/USD, GBP/USD, and USD/CAD are trading above their short and long-term EMAs
Missed last week’s price action? Read USD’s price recap for March 2 – 6!