The US CPI will come out on Wednesday, May 11, at 15:30 MT time (GMT+3).
US Producer Price Index Will Impact USD
Information is not investment advice
What will happen?
The US will reveal the Producer Price Index (PPI) on January 13, Thursday, at 15:30 GMT+2.
Why is it important?
The PPI is a leading indicator of consumer inflation as bigger charges by producers lead to higher costs for consumers and push inflation up. When inflation is higher than the Fed’s target, the bank can increase rates to cool down inflation. Higher rates, in turn, will push the US dollar up and gold down.
What happened last time?
Last time, the PPI was 0.8% – greater than analysts expected. It reinforced the expectations that the Fed would hike rates sooner than initially thought. It was a bullish factor for the greenback. Thus, the USD/JPY rose by 200 points after the report!
How to trade on US Producer Price Index?
Open the economic calendar a few days before the report and check the market forecast. If it’s considerably higher than the previous numbers, the USD can start rising before the release, and vice versa.
- The USD will strengthen if the PPI is greater than expected.
- If the PPI is worse than the forecasts, the USD will weaken.
Instruments to trade: all the major pairs and XAU/USD.
The United States Bureau of Economic Analysis will release monthly Personal Consumption Expenditures (PCE) on April 29, 15:30 GMT+3.
United States Bureau of Economic Analysis will release Gross Domestic Product (Advance GDP) on April 28, 15:30 GMT+3.
The governor of the Bank of England, Andrew Bailey, will hold a speech on June 29 at 15:30 MT time (GMT+3).
The US Markit will publish Flash Manufacturing and Flash Services PMIs (purchasing managers' indices) on June 23 at 16:45 GMT+3.
The Fed Chair Jerome Powell will testify on the Semi-Annual Monetary Policy Report before the House Financial Services Committee on June 22-23 at 17:00 GMT+3.