Will Fed Chair Powell Move the USD?
The Fed Chair Jerome Powell will testify on the Semi-Annual Monetary Policy Report before the House Financial Services Committee on June 22-23 at 17:00 GMT+3.
Can the UK CPI surprise?
What will happen?
The UK Office for National Statistics will publish Consumer Price Index (CPI) data on Wednesday, May 18, at 09:00 MT. This monthly release compares prices of the specific basket of various goods and services with its price in the same month last year. CPI is a key indicator of overall inflation. Inflation is important to currency valuation because rising prices lead to rising interest rates to curb inflation.
How can GBP react?
The inflation in the UK is the highest since March 1992 at 7%. The rising food and energy prices continue to put pressure on consumers, so the policy makers face hard choices. Last month’s CPI was 7.0%, outperforming the expected 6.7%. The GBP had lost around 530 points but recovered quickly. If you traded one lot, you could have earned $425.00.
How to trade on the UK CPI release?
The greater the “Actual” compared to the “Forecast”, the better it is for currency.
- If the actual number is higher than expected, GBP will rise.
- Otherwise, GBP will fall.
Check the Economic Calendar
Instruments to trade: GBPUSD, EURGBP, GBPCAD, GBPJPY.
Similar
What Can Happen to the CAD after the Retail Data?
Canada will publish Retail Sales and Core Retail Sales on June 21 at 15:30 GMT+3.
How Will US PPI Affect USD?
The US PPI will come out on Tuesday, June 14, at 15:30 MT time (GMT+3).
Latest news
ISM PMI Indicates Contraction
The US Institute for Supply Management will release ISM manufacturing PMI on July 1, 17:00 GMT+3.
US PCE May Soar Soon
The United States Bureau of Economic Analysis will release monthly Personal Consumption Expenditures (PCE) on June 30, 15:30 GMT+3.
Bank of England Tries to Save the Pound
The governor of the Bank of England, Andrew Bailey, will hold a speech on June 29 at 15:30 MT time (GMT+3).
