The Fed is ready to start tapering in November. Since the markets were expecting this and it wasn’t a surprise, the USD slumped allowing risk-on currencies and gold to rally up.
Will the USD drop on lower CPI?
The American monthly CPI will be released at 15:30 MT on January 14
The Consumer Price Index is an important reflection of the domestic inflation process. If the basket of goods costs more for customers, in means that inflation is rising. In this case, the financial authorities will have to impose higher interest rates to stop the prices from going over the top. The last two months referring to the months of October and November have shown a downtrend in this indicator for the US, implying a more dovish financial note and indicating that the American economy has been cooling down. If the December indicator expected for release on January 14 shows the continuation of this tendency, the USD may fall.
- If the CPI is higher than expected, the USD will rise;
- If the CPI is lower than expected, the USD will fall.
US Retail Sales will be out on October 15 at 15:30 MetaTrader time (GMT+3).
The crypto market keeps recovering. Bitcoin has broken above $57,000. The way up to $60,000 is open now!
The United States will release the weekly Unemployment Claims on October 21, at 15:30 MT time (GMT+3).
Great Britain will publish the Inflation Rate on October 20, at 09:00 MT time (GMT+3).
The bullish movement in the stock market is gaining speed, and Bitcoin ETFs are closer than they might seem. What do we need to know for the next trading week?