The Fed held a much-awaited meeting yesterday. The bank hasn’t made any policy changes. As a result, the USD weakened and EUR/USD rocketed. Jump in to know all the latest news!
Important releases for the USD
The United States will publish its PPI and core PPI on December 11, at 15:30 MT time.
Instruments to trade: EUR/USD, USD/JPY, GBP/USD
Producer Price Index (PPI) is an indicator of inflation. In general, we follow the change in the price of finished goods and services by producers. Bigger charges by producers lead to higher costs for consumers. Therefore, inflation rises. Last time, US PPI advanced by 0.3% (vs. the forecast of +0.2%). As for its core level, which excludes food and energy prices due to their disturbing impact, it increased by a lower-than-expected 0.1%. The USD had limited reaction because of more global events affecting it. However, if the data surprises, we may see the short-term upside momentum this time.
- If the indicators are higher than the forecasts, the USD will go up;
- If the indicators are lower than the forecasts, the USD will go down.
What will happen? The US Q2 Gross Domestic Product will be announced at 15:30 MT time (GMT+3) on Thursday, July 29…
Today the Fed will make a policy statement at 21:00 GMT+3. This event will affect all the currency pairs with the USD and thus almost the all Forex market!
The Reserve Bank of Australia (RBA) will hold a meeting and announce changes to the monetary policy on August 3, at 07:30 MT time (GMT+3).
What events to follow and how to trade during the week of July 2-6?
EUR/USD retraced to 1.1870 after breaking out this level. It should be just a natural sell-off ahead of the further rally up.