The main market tendency today is that the US dollar is rising against its major peers and riskier assets such as stocks and oil are plummeting.
Get ready to trade the USD on the inflation data.
The US will release monthly consumer price index figures (CPI) for October at 15:30 MT time on November 14.
This indicator is important as this is the base for the Federal Reserve future monetary policy decisions. Last month the inflation rate declined by 0.1% and made the USD weak. The higher-than-expected level will be appreciated by the market, so the USD will get a chance to strengthen.
• If CPI outperforms the forecast, the USD will rise.
• If CPI is lower than the forecast, the USD will fall.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.