Will the CPI Crash the USD?
The most impactful releases of this week will fill the market with volatility and sharp movements.
How Will US PMIs Affect the USD?
Information is not investment advice
What will happen?
The US Markit will publish Flash Manufacturing and Flash Services PMIs (purchasing managers' indices) on June 23 at 16:45 GMT+3. These are the diffusion indices based on surveyed purchasing managers in the manufacturing and services industries. The surveys ask about 800 purchasing managers to rate the relative level of business conditions.
Why is it important?
Generally, businesses quickly react to the changing economic situation. After the indices are calculated, we can compare them and see the conditions of industries. If the index is above 50, an industry is expanding. Vice versa, if it is below 50, an industry is contracting. An expansion is usually a bullish sign for the USD because it means that the economy is growing.
During the previous release, Flash Manufacturing PMI came out at 57.5 (vs. 57.6 forecasted), while Flash Services PMI dropped to 53.5 (vs. 55.1 expected). As a result, the US dollar weakened in the short term. If you traded one lot of EURUSD on this release, you could have earned around $270.
How to trade on US Flash Manufacturing and Services PMIs?
The indicators are likely to influence the USD pairs. You need to wait for the releases and compare the actual figures from the economic calendar with the forecasts.
- If the actual numbers beat expectations, the USD will go up.
- On the contrary, lower numbers will pull the USD down.
Instruments to trade: XAUUSD, EURUSD, USDCAD, USDCHF.
Similar
Three Currencies to Watch This Week
We prepared an outlook of major events of this week. Check it and be ready!
The Fed won't miss these releases!
Here you'll find what awaits the market this week, from the CPI release to a possible gold plunge.
Popular
Will the CPI Crash the USD?
The most impactful releases of this week will fill the market with volatility and sharp movements.
Crypto Market Changes The Trend
Happy Tuesday, dear traders! Here’s what we follow:
The US Labor Market And Real Estate Market Are In Focus This Week
Labor Market and Real Estate Market data was published yesterday. Markets are slowing down, so the economy is in recession. Today the traders should pay attention to the Retail sales in Canada.
Choose your payment system
