How to trade the JPY?
Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:
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
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