The USA will publish unemployment claims on October 22 at 15:30 MT time. How to trade after the release?
The US CPI is out: will the USD grow?
The US monthly CPI is announced on Tuesday at 15:30 MT time.
Instruments to trade: EUR/USD, USD/CAD, USD/JPY, GBP/USD
In the current circumstances, the CPI is a direct indicator of the US economic recovery. After a slump to 255.768 in April-May, it has been only increasing throughout the next three months to come to the current 259.681. This level is even higher than the last pre-virus high of 259.05 which is a good sign. Now, the question is whether the US economy will keep the pace of recovery. If it does, it will be taken as a positive sign by the market, and the USD may rise on that. Otherwise, weak consumer price data may indicate a slowdown and send the USD into a bearish phase.
- If the CPI exceeds expectations, the USD will rise.
- Otherwise, the USD will fall.
The European Central Bank publishes the monetary policy statement alongside with an update on the interest rate on October 29, at 15:45 MT time.
The Bank of Canada will publish the rate statement together with the interest rate on October 28, at 17:00 MT time.
EU Flash Manufacturing & Services PMI will come out on Friday at 11:00 MT time!