Currently, the Dollar is seeing the most substantial decline against the EUR/USD
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US Dollar - Mixed Price Movement Ahead of Tomorrow’s CPI Release
The US Dollar during this morning’s Asian Session has declined against most major pairs, including the Euro, Pound but has increased against the Japanese Yen. However, volatility remains low on the EUR/USD and GDP/USD as order flow books show a lack of activity. This is understandable, considering the importance of tomorrow’s CPI release, but traders should be cautious of a possible change in trend. The US Dollar Index has declined to 103.59, which results in a slight decline since Friday.
Currently, the Dollar is seeing the most substantial decline against the EUR/USD, but the exchange rate continues to follow a downward trend pattern. The price also trades at a support level when following regression channels and other trendlines. Investors will be eager to see how the exchange rate reacts during the overlap between the European and US Trading Sessions this afternoon.
Read next: GBP/USD Started The New Week In A Calm Way, EUR/USD Is Waiting For US CPI Report| FXMAG.COM
The price of the EUR/USD will be influenced by tomorrow’s inflation rate and the Federal Reserve’s response. The US Dollar will struggle to maintain a longer-term trend if the Fed fails to be more restrictive. Investors note that the European Central Bank remains hawkish and shows no signs of slowing. The President of the German Federal Bank advises investors that the ECB should be more decisive in bringing inflation under control and confirms he favors more hikes. Regulator members Luis de Guindos, Klaas Knot, and Isabelle Schnabel also express a similar view.
