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.
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.
US Retail Sales will be out on October 15 at 15:30 MetaTrader time (GMT+3).
The crypto market keeps recovering. Bitcoin has broken above $57,000. The way up to $60,000 is open now!
The United States will release the weekly Unemployment Claims on October 21, at 15:30 MT time (GMT+3).
Great Britain will publish the Inflation Rate on October 20, at 09:00 MT time (GMT+3).
The bullish movement in the stock market is gaining speed, and Bitcoin ETFs are closer than they might seem. What do we need to know for the next trading week?