According to Odaily, analysts at UniCredit Bank have indicated in a report that the upcoming release of the US Consumer Price Index (CPI) data could be a significant test for the foreign exchange market, particularly for the US dollar. This follows stronger-than-expected non-farm payroll data released last Friday. Persistent price stickiness might lead investors to reconsider the number of future rate cuts by the Federal Reserve, thereby supporting the dollar. If this scenario unfolds, the EUR/USD pair could fall below 1.09, and the USD/JPY pair might surpass 150. Conversely, a decline in the overall CPI could result in a slight drop in the dollar, but it is unlikely to push the EUR/USD pair above 1.10.
