The US will reveal Non-farm payrolls on January 7, Friday, at 15:30 GMT+2 (MetaTrader time).
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.
Germany will release the flash Purchasing Managers' Index (PMI) for manufacturing and services industries at 10:30 GMT+2 on January 24.
Leibniz Centre for European Economic Research (ZEW) will release an economic sentiment index for Germany on January 18, 12:00 GMT+2
Great Britain's office for national statistics will release CPI data on January 19, 09:00 GMT+2.