🚀 Traders, buckle up for the BRIGHTEST news of the week! 🚀
📆 Set your alarms! The event you can't afford to miss this week is the release of UK inflation data, scheduled for Wednesday, July 19, 2023, at 09:00 (terminal time, GMT+3).
🔍 Why does it matter? This data will play a crucial role in determining the scale of the Bank of England's next interest rate hike.
📊 What are the forecasts? Economists project inflation to decrease from 8.7% to 8.2% year-on-year in June. Meanwhile, core inflation (excluding food and energy prices) is projected to hold at a record high of 7.1% year-over-year.
💷 Which trading instruments could it affect? This event could significantly influence all GBP currency pairs and the British index, such as GBP/USD, GBP/CAD, GBP/JPY, GBP/AUD, GBP/NZD, EUR/GBP, GBP/CHF, and UK100.
🧮 How should you interpret the data? If the consumer price index for services doesn't demonstrate a slowdown, expect the Bank of England to opt for an aggressive 0.5% rate hike. This could potentially give the British currency an edge over the dollar and the euro. But if services inflation shows a decrease, the Bank of England might limit the hike to 0.25%, causing negligible changes in the pound exchange rate.
💡 Always remember, major economic news causes heightened volatility, creating profit opportunities for traders. Yet, it's crucial to trade wisely during these events. Post-news trading is generally less risky and more prudent than trading during the turbulence of the release. Evaluating all economic reports for a country in a comprehensive manner, rather than in isolation, gives a more in-depth insight.
👉 Stay alert, trade smart, and keep track of the latest updates with JustMarkets! 📈