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!
Will the US CPI boost the USD?
The American CPI is announced on Wednesday at 15:30 MT time.
Instruments to trade: EUR/USD, GBP/USD, AUD/USD, USD/CAD
Consumer prices are the indicator and the main component of country inflation. Inflation, above all, is the indicator of economic activity. More consumer demand – higher prices, lower consumer demand – lower prices. Consumer demand, in turn, is the basis of domestic economic health and prosperity. Therefore, if the US CPI is higher than the forecasts, that would mean that the US economy is recovering faster than projected. Such a scenario would boost the USD.
- If the CPI is better than though, the USD will rise.
- Otherwise, it will drop.
The US Institute for Supply Management will release ISM manufacturing PMI on July 1, 17:00 GMT+3.
The United States Bureau of Economic Analysis will release monthly Personal Consumption Expenditures (PCE) on June 30, 15:30 GMT+3.
The governor of the Bank of England, Andrew Bailey, will hold a speech on June 29 at 15:30 MT time (GMT+3).