This week the focus of attention will be on the US PCE price index, Eurozone flash CPI data and Japan CPI figures. As such, the focus will turn on how Dollar index, EURUSD and USDJPY may react.

 US PCE price index → Dollar index

As the Fed's favourite way to measure inflation, the PCE inflation numbers, which are due out on Friday, may be closely watched by traders. As for the PCE rates, there is no forecast for the headline rate at this time, but the core rate is expected to have stayed the same at 4.7% y/y. Dollar index is losing some momentum with the broader outlook remaining bearish.

Eurozone flash CPI → EURUSD

Eurozone flash CPI estimates for March are released on Friday. Headline inflation may have dropped below 8% at 7.1% in terms of forecasts. But, the more pressing concern for the ECB is the persistent increase in core inflation rates. EURUSD is standing above 1.0800 after the strong rebound off the 50-day simple moving average (SMA).

Japan CPI → USDJPY

In February, Japan's inflation rate dropped sharply, easing the pressure on the Bank of Japan to scale back its stimulus policies even more. The core CPI in Tokyo is expected to continue to drop to 3.1% from 3.3% previously. USDJPY bounced off the short-term uptrend line, but the technical oscillators are suggesting more losses.