For a long time, traders considered American Non-farm Payrolls (NFP) the most important release in the market. However, the situation has changed. Now US CPI moves financial markets.
Trading plan for March 12
- An important day for the GBP. GDP growth and Manufacturing production data will be not the only event that will affect the currency. Parliament meaningful vote on Theresa May's plan is another important point that will create a high volatility. Follow news with FBS to be up to date.
- If you are scared of high volatility of British pound, try your luck on USD trading. CPI and Core CPI levels will be out in the middle of the day. Will these data turn the EUR/USD pair around?
- And one more currency pair - USD/JPY. Although the USD has been depreciating against most of currencies, the JPY appeared to be too weak to fight against the US dollar. Check key levels for the day.
The higher prices seen today are generally related to the pandemic, that’s no doubt. US consumer prices jumped in October at the fastest pace in three decades putting the Biden administration on the defensive and increasing prospects that the Federal Reserve will raise interest rates next year. Jerome Powell says Fed will discuss speeding up bond-buying taper at the December meeting. What does it mean for markets?
It seems like most of the assets have joined Black Friday's sell-off with global indices, risky currencies, and commodities going down.
Gold is about to break the most significant support. The US dollar index keeps gaining momentum. However, the situation might change this week, and we might see a tiny correction. Investors might return to risk-on and push the US stock market indices and cryptocurrencies to the upside. These and more trade ideas are in our new weekly video! Do not miss it!
This week is likely to be pivotal for many assets, including gold, USD, and several stocks. However, we need to be focused and react fast to the ever-changing environment to get the most from it.
This week, the majors will be affected by the interest rate decision by the Federal Reserve, NFP, the BOE Meeting, and more events.