Inflation Is in Focus Again
Oil prices are rising and Russia banned the export of its petrol. What's happening in the markets?
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.
Similar
GBPUSD May Strengthen Resulting the Fed and The BOE Meetings
In today's market insights, we delve into Citibank's oil price predictions, the evolving competition between Huawei and Apple, the Saudi Arabia-Tesla partnership, and the upcoming rate decisions from the world's major central banks.
Four Banks Fight Against Inflation
It will be the hottest week of September, with four central banks’ meetings, five PMI releases, and a lot to trade.
Latest news
Bearish Signal For The USD
XAUUSD fell below 1900 for the first time since March 2023. Meanwhile, the US dollar index gives a bearish signal. Read the full report to learn more!
Current Risks for Developed Economies
Oil prices are rising while the US government is on the verge of shutting down. How will it affect the market?
News for The Week
US stock markets started falling, while the US dollar is rising. What to expect from
