🔥 Traders, mark your calendars for the BIGGEST news of the week! 🔥
🗓️ Keep your eyes open! The event to watch this week is the release of US inflation data, scheduled for Wednesday, July 12, 2023, at 15:30 (terminal time, GMT+3).
🔎 Why is it significant? This data will provide a critical insight into the future monetary policy of the U.S. Federal Reserve. The resilient labor market shown in last week's NonFarm report combined with falling inflation could perplex the Fed's policymakers.
📈 What's the projection? Economists predict inflation to drop from 4.0% to 3.1% year-over-year in June. Core inflation (excluding food and energy prices) is expected to fall from 5.3% to 5.0% year-over-year.
💱 Which trading instruments might it impact? This event could have a significant effect on all USD currency pairs, gold, and U.S. indices, such as EUR/USD, USD/CAD, USD/JPY, AUD/USD, GBP/USD, NZD/USD, USD/CHF, US30, US100, US500, and XAU/USD.
📝 How to decipher the data? A decline in inflation to the lows seen in March 2021 might not change the US Fed's perspective on a 0.25% interest rate hike at the July meeting. The robust labor market leaves room for maneuvering. However, the market remains skeptical about a second rate hike. Lower inflation could be positive for U.S. indices and gold. Any surprise data indicating inflation's sustainability would cause the dollar index to strengthen and indices and gold to drop.
💡 Remember, key economic news triggers increased volatility, presenting traders with profit opportunities. However, it's essential to adopt a strategic approach during these events. Post-news trading is generally less risky and more prudent than trading amidst the commotion of the release. Evaluating all economic reports for a country holistically, instead of as isolated components, offers a more nuanced perspective.
👉 Stay informed, trade wisely, and keep up with the latest updates with JustMarkets! 📈
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