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Will the Greenback go back to its downtrend this week? Or can the bulls extend their party for a few more days?

Check out the market-moving themes that might affect USD’s intraweek trends!

CPI reports (Jan 13, 1:30 pm GMT)

  • The consumer price index (CPI) rose more than expected in November, as costs of hotel stays, airfares, and apparel jumped
  • USD jumped at the news though it also gave up its gains in the next few hours
  • Analysts see monthly consumer prices rising by another 0.3% in December while core CPI slows down from 0.2% to 0.1% and annual inflation remaining at a 1.2% growth
  • Take note that Fed member have already hinted that they’re willing to let inflation run hot before stepping in with monetary tightening policies

Retail sales (Jan 15, 1:30 pm GMT)

  • Retail sales numbers disappointed in November and highlighted the need for fiscal stimulus
  • USD didn’t have a sustained reaction to the news since the report was printed just hours before the Fed’s last policy decision for 2020
  • Market players expect retail sales to improve from -1.1% to -0.3% in December, with core retail trading only slipping by 0.1% (from -0.9%) and annual retail sales falling from 4.1% to 3.6%

Overall dollar demand

  • Focus will turn to the leadership transition in the U.S. and how Trump will handle the economy in the last days of his term
  • As seen in last week’s price action, stimulus prospects in the U.S. can limit the dollar’s downtrend against its major counterparts

Technical snapshot

  • Stochastic is highlighting the dollar’s “oversold” conditions against the Aussie
  • USD/JPY and USD/CHF are approaching overbought levels on the daily time frame
USD Forex Pairs Stochastic from MarketMilk
USD Forex Pairs Stochastic from MarketMilk
  • Daily SMAs are showing short-term demand for the dollar
  • Watch out for retracement or reversal opportunities on USD/CAD, USD/CHF, EUR/USD, and USD/JPY
USD Forex Pairs SMAs from MarketMilk
USD Forex Pairs SMAs from MarketMilk
  • The dollar was most volatile against the safe-havens and the pound 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 Jan. 4 – 8!