Three Currencies to Watch This Week
We prepared an outlook of major events of this week. Check it and be ready!
Can US CPI Impact the USD?
What will happen?
The US Bureau of Labor Statistics will release CPI and core CPI on Friday, June 10, at 15:30 MT. CPI accounts for most of the overall inflation, which is important to the currency valuation because rising prices make the central bank raise interest rates.
Possible USD moves
Currently, the US CPI is still at four-decade high levels. That’s why every release is interesting to see, as it brings volatility to the US dollar.
Last time the results met expectations with CPI 0.3% vs. 0.2% forecasted, and core CPI 0.6% vs. 0.4%. USD reacted well: EURUSD lost almost 550 points and then recovered quickly. If you traded 1 lot here, you would have earned $550.
How to trade on the US CPI release?
- If the US CPI is greater than forecasted, USD will likely strengthen against other currencies.
- Alternatively, the USD will drop.
Check the Economic Calendar.
Instruments to trade: EURUSD, USDCAD, USDCHF.
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How to trade the JPY?
Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:
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Focus on Banks' Meeting and NFP
The RBA and the Bank of Canada will add volatility to the AUD and the CAD, while USD is expected to be boosted by the Non-farm payrolls.
