The United States will release the weekly Unemployment Claims on October 21, at 15:30 MT time (GMT+3).
Is the American economy cooling down?
US Core CPI will be released this Friday at 15:30 MT time.
Instruments to trade: EUR/USD, USD/JPY, USD/CAD, GBP/USD
The US Core Consumer Price Index has been increasing at a steady 2.3% rate since October, with the only exception of 2.4% in February. On Friday, March inflation will be announced. The consensus for the upcoming figure is 2.3%. In general, the market will be happy if the inflation stays roughly where it is now – that would mean that no significant slump in consumer spending took place. Taking into account the troublesome state of the US economy, that would be the best scenario. If inflation turns out to be lower, that would mean that people spend less, demand less, hence the sellers will have to lower prices. Therefore, the overall economic activity would slow down its pace in this case. Given the fears of recession or even depression, a 2.3% growth of Core CPI in March would probably be the best possible news.
- If inflation is lower than expected, the USD will lose value.
- Otherwise, the USD will gain power.
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).
Last week was full of surprises! Stock indices have shown significant growth…
The US dollar is heading to close the seventh day in the red as it remains under selling pressure. The US data at 15:30 GMT+3 (jobless claims and Philly Fed Manufacturing Index) may support the greenback if it's strong.
Canada will publish the Retail Sales and Core Retail Sales on October 22, at 15:30 MT time (GMT+3).