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.

Check the economic calendar

                                                                                                   LOG IN

Gaspar Markosyan

More by this author

Similar

11.02.2022 17:11 What will move the market on February 14-18?

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!

24.12.2021 14:15 First NFP in 2022 Can Rock the Markets

The US will reveal Non-farm payrolls on January 7, Friday, at 15:30 GMT+2 (MetaTrader time).

24.12.2021 13:06 Big Event for USD: Retail Sales

The US will publish the Retail Sales on January 14, Friday, at 15:30 GMT+2. 

Latest news

30.06.2022 08:30 ISM PMI Indicates Contraction

The US Institute for Supply Management will release ISM manufacturing PMI on July 1, 17:00 GMT+3.

29.06.2022 08:35 US PCE May Soar Soon

The United States Bureau of Economic Analysis will release monthly Personal Consumption Expenditures (PCE) on June 30, 15:30 GMT+3.

28.06.2022 08:35 Bank of England Tries to Save the Pound

The governor of the Bank of England, Andrew Bailey, will hold a speech on June 29 at 15:30 MT time (GMT+3).