EUR/USD and USD/JPY await US inflation data while EUR/GBP continues to rise

EUR/USD consolidates ahead of US inflation data

EUR/USD’s swift advance paused around its $1.0093 late October high with it now consolidating slightly above parity ahead of Thursday’s US October Consumer Price Inflation (CPI) data which is expected to slip to 8.1% year-on-year (YoY), from 8.2% in September.

The pair thus consolidates below its recent $1.0093 to $1.0096 highs and may slip back towards its early October high at $0.9999. Further support can be spotted around the mid-September low at $0.9946. Were the current consolidation phase to be followed by renewed upside and a rise above $1.0096, the mid-September peak at $1.0198 would be in focus.

EUR/GBP remains on track to reach its £0.8867 October peak

EUR/GBP continues its advance towards its £0.8867 mid-October high as the Pound Sterling depreciates further and as the UK RICS House Price Balance comes in at -2% versus an expected 19% and a revised 30% (from 32%) in the previous month.

Above Wednesday’s £0.8828 high, the 26 and 28 September lows can be found at £0.8853 as well as the October peak at £0.8867. Minor support below the 21 October high at £0.8780 high can be seen along the November support line at £0.8741 as well as along the 55-day simple moving average (SMA) at £0.8713. Further down lies the early October low at £0.8649.

USD/JPY stabilises ahead of US CPI data release

USD/JPY stabilised around its ¥145.11 late October low over the past couple of days while awaiting US October inflation data, with any slowing of price rises likely weighing on the greenback and push it towards the 55-day simple moving average (SMA) at ¥144.92 and perhaps also to the ¥143.53 early October-low.

Stronger than expected inflation would probably prompt a revival of concerns about a continued sharp pace of the Federal Reserve (Fed) tightening and thus propel the US dollar towards its two-month downtrend line at ¥146.95 and perhaps also the late October peak at ¥148.85.