How Energy Crisis Affects German PMI August 23, 2022, 10:30 GMT+3 Germany will publish Flash Manufacturing PMI data on Tuesday, August 23, at 10:30 MT time (GMT+3)…
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
Last week was very interesting for the markets, as we saw the releases of the US Inflation and Disney’s earnings report. So let's see what we should await this week!
The US will reveal Non-farm payrolls on January 7, Friday, at 15:30 GMT+2 (MetaTrader time).
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.