The USD has broken through

Economic Events Outlook, Nov 14 – US & UK Inflation Ready to Rumble

Posted Wednesday, November 14, 2018 by
Arslan Butt • 2 min read

Who’s up for trading the market moving economic events? Today, investor focus stays on the CPI figures from the United States and the United Kingdom. Moreover, the Prelim GDP from Germany will be there to move the markets.

Top Economic Events Watchlist

On Wednesday, the Euro and Sterling edged higher as traders confidence soared on news that Britain had arrived at a draft divorce deal with the European Union after more than a year of discussions.

Great Britain Pound – GBP

CPI y/y The Office for National Statistics is scheduled to release the inflation data at 9:30 (GMT). Fellas, the CPI shows a change in the price of goods and services purchased by consumers.

The Bank of England boosted rates in August after inflation had picked up. As per economist forecast, the prices are expected to rise. The inflation rate is likely to be 2.5% vs. 2.4% in October. The Sterling is likely to remain supported as investors will be factoring in the stronger inflation forecast before the release.

Eurozone – EUR

German Prelim GDP q/q – At 7:00 (GMT), Destatis is due to release the prelim figures on German growth. We have already seen that the Eurozone economy stalled in Q3 – 0.2% according to the first release. However, the report did not cover Germany, the largest country. The German GDP grew by 0.5% in Q2 and a slowdown is likely in Q3 with a potential for an obvious decrease of 0.3%.

US Dollar – USD

CPI m/m The US labor market surprised the market with a remarkable growth in the labor sector. The US economy added 250K jobs and the unemployment rate plunged to 3.7% which is quite amazing.

Logically, the falling unemployment rate should also change the spending patterns of people. There should be an increased number of people spending on unnecessary products by the end of the month. Which means, the demand curve will be higher than before.

Thus, a rise in demand leads to a jump in prices and a jump in prices is called inflation. Back in September, the Core CPI rose by 0.1% but economists are expecting a jump of 0.2% in October.

We should be ready to capture fluctuations caused by sudden changes in figures. CPI is due at 13:30 (GMT) today.

Summing Up – It’s a fundamental day, and the best thing to do is to take a position after the release of news.

Stay tuned to FX Leaders for forex trading signals and live market updates. All the best for today!

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About the author

Arslan Butt is our Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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