Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:
Keep an eye on US inflation data
The United States will publish CPI and core CPI on September 11, at 15:30 MT time.
Instruments to trade: EUR/USD, USD/JPY, GBP/USD
The consumer price index represents the change in the price of goods and services purchased by consumers. We pay attention to this indicator, as the consumer prices account for a majority of overall inflation. Based on the level of CPI, the central bank decides about further monetary policy actions. There are two forms of CPI: headline and core. The difference between them is simple: the core indicator excludes food and energy prices due to their volatility. Last time, both indicators advanced by 0.6%. As a result, the US dollar strengthened in the short term. Will the reaction of the greenback be more significant?
- 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.
The first week of November promises to be eventful, as we have the Fed meeting, the BOE update, and the NFP release. Read more details here.
Last week several important economic updates influenced the Forex market. US preliminary GDP fell less than expected (0.6% actual vs. 0.7% forecast). Below you will find the key events to trade on during the week from August 29 to September 2.
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.