The market is resilient ahead of the speeches of Fed’s Powell and ECB President Lagarde, but there are still interesting movements.
Trade GBP on the crucial economic event
British CPI reading will be out at 11:30 MT time on October 17.
The Consumer Price Index is the leading indicator for every economy as it reflects the inflation level. The central bank forms its monetary policy according to this level. That’s why it is not a surprise that great CPI data pulls the GBP up, weak data pushes it down.
Last time the data was released on September 19. It outperformed the forecast (2.7% vs 2.4%). As a result, the GBP/USD pair rose significantly from 1.3097 to 1.3213.
• If CPI is greater than expected, the GBP will rise.
• If CPI is weaker than expected, the GBP will fall.
The uncertainty over US fiscal stimulus and Brexit, and also rising new virus cases deteriorated the market mood. That’s why we can expect the further rally of the US dollar and the fall of riskier assets today.
The market sentiment is mixed, but there are still interesting movements on the market.
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