Fed Chair Jerome Powell’s comments on the Jackson Hole Symposium resulted in the worst weekly candle in US500 since June.
Will CPI Push USD Higher?
What will happen?
The US CPI will come out on March 10, at 15:30 MT (GMT+2).
Consumer prices reflects the most of the overall inflation. It’s important to consider inflation in the currency valuation because rising prices lead the central bank to raise interest rates.
Last time the result outperformed the expectations, and EURUSD demonstrated high volatility.
How to Trade on US CPI?
- If the US CPI is greater than forecasted, USD is likely to strengthen against other currencies.
- If the US CPI is lower than forecasted, USD is likely to weaken against other currencies.
Instruments to trade: EURUSD, USDCAD, GBPUSD.
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.
As Europe moves into recession, next week may provide us with some amazing trading opportunities. Here they are!
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.