The main focus of traders will be on US inflation at 15:30 GMT+3. Analysts expect the huge spike of the US inflation.
US inflation data on Wednesday: what to expect?
What will happen?
The US CPI and Core CPI will be out on February 10 at 15:30 MT time. The consumer price index (CPI) shows the change in the price of goods and services purchased by consumers. There are two types of CPI: headline and core. The only difference is that the core indicator excludes food and energy prices due to their volatility.
How to trade on US CPI?
Traders follow this indicator as the consumer prices account for a majority of overall inflation. The rise of inflation is important for the US dollar. Based on its level, the central bank decides about further monetary policy actions. If the CPI is higher, it is more likely that the Fed will raise interest rates, which will push the USD up.
- If the indicators are higher than the forecasts, the USD will rise;
- If the indicators are lower than the forecasts, the USD will fall.
Instruments to trade: EUR/USD, GBP/USD, AUD/USD, USD/CAD
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