Crypto Market Changes The Trend
Happy Tuesday, dear traders! Here’s what we follow:
Key Forex Event: US Inflation Rate
Information is not investment advice
What will happen?
The US Inflation Rate (CPI) will be announced on Wednesday, October 13, at 15:30 MT (GMT+3). The inflation rate measures the month-over-month change in the price of goods and services. Traders eagerly await this event as it will impact the USD and thus the vast majority of currency pairs in the Forex market.
Why is it important?
The Federal Reserve makes policy decisions based on the Inflation Rate data. Thus, not only the actual inflation data but even traders’ expectations for the CPI release increase volatility in the Forex market. Last time, inflation was 0.3%, which was worse than expected. As a result, USD/JPY dropped sharply.
How to trade on US inflation?
It depends on whether the actual Inflation Rate exceeds the market forecast or not. The forecast will appear a few days before the release in the economic calendar. The better-than-expected inflation rate would force the Fed to raise rates. As a result, the USD will surge. Here’s the rule below, but remember that every rule has exceptions sometimes!
- If the US inflation rate is greater than the forecasts, the USD will rise.
- Otherwise – drop.
Instruments to trade: EUR/USD, USD/JPY, all other majors, and also gold (XAU/USD)
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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.
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