Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:
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.
Now traders follow the economic events with new vision as inflation in the US seems like decreasing. Let’s see what releases will influence the market due to that factor.
The week will have the biggest event in the US political process over the last two years. How will the elections affect the Forex market? We covered the most important news of this week in this report.
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.