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Positive economic updates pushed the dollar higher across the board last week.

Can this week’s catalysts inspire more dollar-buying?

I’ve got a list of the potential catalysts that you need to watch if you’re trading the Greenback in the next couple of days:

CPI and PPI reports

  • Headline producer prices (Sept 10, 12:30 pm GMT) could slow down from 0.6% to 0.2% in August
  • Core PPI also expected to dip from 0.5% to 0.2%
  • Like the headline PPI, consumer prices (Sept 11, 12:30 pm GMT) is also seen slowing down from 0.6% to 0.2% in August
  • Annualized CPI to clock in at 1.5% after coming in at 1.6% in July
  • Now that the Fed has shared its willingness to let prices run hot before stepping in, CPI and PPI reports could inspire limited volatility than the usual

Other closely watched releases

  • JOLTS job openings (Sept 9, 2:00 pm GMT) to print at 5.8M after 5.9M reading in June
  • Initial jobless claims (Sept 10, 12:30 pm GMT) expected at 810K, lower than last week’s 881K
  • EIA crude oil inventories (Sept 10, 3:00 pm GMT) last printed a decline of 9.4M barrels for the week ending August 28

Overall dollar demand

  • A lack of updates on the next U.S. stimulus bill might push the dollar higher against its higher-yielding counterparts
  • Vaccine-related headlines would inspire risk-taking and maybe drag on the dollar
  • A lack of top-tier economic reports from major economies this week could lead to profit-taking from the previous weeks’ strong moves

Technical snapshot

  • Stochastic considers the dollar “oversold” against Kiwi on the daily time frame
  • The dollar is approaching overbought conditions against the euro and franc
USD Forex Pairs Stochastic from MarketMilk
USD Forex Pairs Stochastic from MarketMilk
  • SMAs on the daily time frame reflect a short-term bullish demand for the dollar
  • Look out for retracement or reversal opportunities on EUR/USD, USD/CHF, and USD/JPY
  • The dollar remains mostly bearish against the comdolls and the pound
USD Forex Pairs SMAs from MarketMilk
USD Forex Pairs SMAs from MarketMilk
  • USD was most volatile against AUD, GBP, NZD, and EUR in the last seven days
USD Forex Pairs Volatility from MarketMilk
USD Forex Pairs Volatility from MarketMilk

Missed last week’s price action? Read USD’s price recap for Aug. 31 – Sept. 4!