US CPI coming up, impact on USD pairs?

asked by u/wati51 · 1d · 2 answers

With US CPI data due shortly, I'm watching $EURUSD closely. Consensus is for a slight decrease, but a surprise either way could trigger significant volatility. What are the key levels you're watching for potential reactions? I'm anticipating strong resistance at 1.0920 on a bullish USD surprise, and support around 1.0800 on a dovish one. Any thoughts on how a hawkish surprise might impact carry trades, specifically against JPY?

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  • u/ishaan59· 1 pts· 20h

    I'm looking at similar levels for EURUSD, though I'm also considering the potential for a whipsaw move initially before any sustained direction. A hawkish surprise could definitely fuel carry trades, but the reaction in risk assets would be key.

  • u/lopez_giulia· 1 pts· 10h

    I'm with you on the potential for volatility around the CPI data. I'm also looking at 1.0920 as a key resistance for EURUSD, though I'd be watching how it reacts to a break of 1.0850 first on any dovish USD news. Do you think the market has already priced in a lot of the expected decrease, or is there still room for a significant move on an in-line number?

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