Australia will release employment change and an unemployment rate on Thursday, October 14, at 03:30 MT (GMT+3).
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.
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The US Inflation Rate (CPI) will be announced on Wednesday, October 13, at 15:30 MT (GMT+3). Traders eagerly await this event as it will impact the USD and thus the vast majority of currency pairs in the Forex market.
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The Fed is ready to start tapering in November. Since the markets were expecting this and it wasn’t a surprise, the USD slumped allowing risk-on currencies and gold to rally up.
US Retail Sales will be out on October 15 at 15:30 MetaTrader time (GMT+3).