The United States will release the weekly Initial Jobless Claims on May 13, at 15:30 MT time
Will inflation push the greenback higher?
What will happen?
The United States will publish a monthly Inflation Rate and Core Inflation Rate on May 12, at 15:30 MT time. The Inflation rate measures the change in the price of goods and services. The core indicator is different as it does not include food and energy prices. The Federal Reserve pays particular attention to these indicators because a rise in inflation pushes the regulator towards monetary policy tightening. As a result, the US dollar goes higher.
How to trade on the releases of Inflation and Core Inflation?
Nothing can be easier! Pay attention to the forecasts in the economic calendar and trade in the right direction right after the release.
- If the indicators are higher than the forecasts, the USD will go higher;
- On the other hand, the USD will weaken against other currencies.
Instruments to trade: EUR/USD, GBP/USD, USD/JPY
Stocks especially tech ones dropped on Tuesday on concerns over inflation. Gold is viewed as a hedge against inflation, that’s why it’s trading now near the three-month high.
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Elon Musk, Tesla’s founder and CEO, said the company wouldn’t accept Bitcoin as payment any longer. As a result, BTC/USD dropped to $45,300, the low unseen since March.
The USA will post Retail Sales and Core Retail Sales on May 14, at 15:30 MT time.
The main focus of traders will be on US inflation at 15:30 GMT+3. Analysts expect the huge spike of the US inflation.