The Fed held a much-awaited meeting yesterday. The bank hasn’t made any policy changes. As a result, the USD weakened and EUR/USD rocketed. Jump in to know all the latest news!
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.
What will happen? The US Q2 Gross Domestic Product will be announced at 15:30 MT time (GMT+3) on Thursday, July 29…
Today the Fed will make a policy statement at 21:00 GMT+3. This event will affect all the currency pairs with the USD and thus almost the all Forex market!
The Reserve Bank of Australia (RBA) will hold a meeting and announce changes to the monetary policy on August 3, at 07:30 MT time (GMT+3).
What events to follow and how to trade during the week of July 2-6?
EUR/USD retraced to 1.1870 after breaking out this level. It should be just a natural sell-off ahead of the further rally up.