Last week was very interesting for the markets, as we saw the releases of the US Inflation and Disney’s earnings report. So let's see what we should await this week!
How Will USD react to Core PCE Price Index?
What will happen?
Core PCE Price Index will be announced at 15:30 MT (GMT+3) on Friday, October 1.
The index is different from Core CPI as it only measures goods and services targeted towards and consumed by individuals. Prices are weighted according to total expenditure per item which gives important insights into consumer spending behavior. This is rumored to be the Federal Reserve's favorite inflation measure.
Last time the result met the expectations, but GBP/USD rose, as the result was lower than the previous one.
How to trade on Core PCE Price Index?
- If the Core PCE Price Index is greater than forecast, the USD is likely to strengthen against other currencies.
- If the Core PCE Price Index is lower than forecast, the USD is likely to weaken against other currencies.
Instruments to trade: USD/CAD, USD/CHF, GBP/USD
The Australian Bureau of Statistics will announce the updated Unemployment Rate and Employment Change data on Thursday, May 19, at 04:30 MT.
The UK Office for National Statistics will publish Consumer Price Index (CPI) data on Wednesday, May 18, at 09:00 MT.
The US Census Bureau will announce Core Retail Sales and Retail Sales on Tuesday, May 17 at 15:30 MT.