FX Alert: Will a Surprising U.S. CPI Ignite Volatile Moves in USD/JPY and AUD/USD?

Just when you thought the U.S. dollar had settled into a cozy little rhythm, along comes Uncle Sam swinging the CPI hammer again — and suddenly, the question on everyone’s lips is: will the dollar bears rally back with a vengeance? December’s modest price gains hinted at a slow waltz toward Fed rate cuts, but what if this week’s inflation numbers pull a fast one, nudging traders to dream bigger—like aggressive rate cuts bigger? If that happens, currency pairs like USD/JPY and AUD/USD won’t just be flashing on charts; they’ll be shouting opportunities loud enough to catch any savvy trader’s ear. Curious how this dance will play out and whether the bears will reclaim the stage? You might wanna keep your eyes peeled. LEARN MORE.

Will U.S. dollar bears make a comeback as Uncle Sam rolls out its latest inflation updates?

Our Event Guide for the U.S. CPI report points to modest consumer price gains in December, a result that would support expectations for gradual Fed rate cuts.

But what if this week’s numbers come in softer and spark more aggressive rate cut hopes instead? In that scenario, setups like USD/JPY and AUD/USD could start looking especially interesting.