Fed Chair Jerome Powell’s comments on the Jackson Hole Symposium resulted in the worst weekly candle in US500 since June.
What Awaits USD amid Skyrocketing Inflation?
What will happen?
The United States will publish the producer price index (PPI) on February 15, at 15:30 MT time. PPI is a price index that measures domestic producers' average changes in prices for their output. Alongside the consumer price index (CPI), PPI tracks country's inflation situation.
Why is it important?
The rising inflation in the United States worries all market participants. While the consumer price index inched to 7% in the last month of 2021 (the highest level since 1982), producer prices jumped by 0.2%.
The market expected an increase of 0.4%, that's why the USD weakened, but only in the short term.
How to trade on the US PPI?
It’s easy! Just compare the actual data with the forecasts which appear a few days before the report in the economic calendar.
If the figures are higher than the forecasts, the USD will rise.
Otherwise – fall.
Instruments to trade: EUR/USD, USD/JPY, GBP/USD
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.
The United States will publish the Inflation Rate and Core Inflation Rate, also known as US CPI and Core CPI, on August 10 at 15:30 GMT+3.
Main news that will drive the market in the upcoming week include CB Consumer Confidence Index, Canadian GDP, and US Core PCE Price Index
The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.
Every week we expect many interesting events that can shake the market.