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.
US PCE Price Index is going out
What will happen?
US PCE Price Index will be out on Friday at 15:30 MT. This indicator is similar to the US inflation data. The only difference is that it only measures goods and services targeted towards and consumed by individuals. There is one rumor among traders. They say PCE Price Index is the Federal Reserve's favorite inflation measure. Since the Fed’s policy actions and US inflation are the hottest topics among investors these days, this indicator may attract more attention than usual.
How to trade on PCE Price Index?
The indicator will have an impact on pairs containing the USD, which is the majority of the currency pairs in the entire Forex market.
- If it is better than expected, the USD will strengthen.
- Alternatively, the USD will weaken.
Instruments to trade: EUR/USD, AUD/USD, USD/JPY
The United States will release the weekly Unemployment Claims on October 21, at 15:30 MT time (GMT+3).
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.
What will happen? ECB will report its Monetary Policy statement at 14:45 MT (GMT+3) on Thursday, October 28…
What will happen? BOC will report its Monetary Policy statement at 17:00 MT (GMT+3) on Wednesday, October 27…
What will happen? Australian Bureau of Statistics will announce Core PCE Price Index at 03:30 MT (GMT+3) on Wednesday, October 27…