Can you make a profit on American inflation?

Can you make a profit on American inflation?

The US monthly CPI is announced at 15:30 MT time on Thursday.

Instruments to trade: EUR/USD, USD/JPY, GBP/USD, AUD/USD

Last year, US inflation was moving within the corridor of 0.1% to 0.4%, with the exception of January and September when it came at the zero level. 

December 0.2% was just a bit lower than the expected 0.3% and did not create a significant reaction in the USD. The currency did not show any noticeable response to that announcement: EUR/USD, USD/CAD, USD/JPY, and other pairs continued their respective trends with little correlation to the released CPI. 

Hence, it is safe to assume that the USD will keep its respective course against other currencies on the day of the CPI release unless the discrepancy between the market expectation and the actual number is significant.

  • If the indicator substantially outperforms the forecast, the USD will be boosted.
  • If the indicator undershoots the expectations, the USD will drop.

Check the economic calendar

1.png

                                                                                         TRADE NOW

Similar

Latest news

Deposit with your local payment systems

Learn more

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Internal error. Please try again later

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera