5 economic events you don't want to miss: 06/26/23

Economic calendar summary

Fed Chair Powell will speak this week without making an interest rate decision - the next FOMC meeting is July 26th. Traders are likely to look for any tell one way or another on the future path of US interest rates as the current market doesn't see rates going much higher than current levels around 5%.*

Also, there are several data points due this week from the US, UK, and Canada that are all expected to be lower than previous measures as the general theme of calming economic data among major economies continues. However, any surprises to the upside or downside among these numbers could lead to strength or weakness, respectively, for that region's currency.

GBP/USD historical prices

Inflation Rate - Canada

Time: 8:30am ET Tuesday, June 27th

Previous: 4.4%

Expected: 3.4%

Canadian inflation is expected to be a full percentage point lower than last month - 3.4% compared to 4.4%. This expected fall in inflation comes at the end of what has been a very bullish June for Canadian dollar relative to USD; USD/CAD fell below 1.3200 this month for the first time since September 2022. If inflation falls more than expected, then USD/CAD could bounce back on the premise of lower Canadian interest rates in the future; a higher-than-expected number could help the trend to continue.

Practice trading economic events using a demo account

Fed Chair Powell Speech

Time: 9:30am ET Wednesday, June 28th

Previous: N/A

Expected: N/A

With at least one more rate hike expected from the Fed, traders will likely listen to Fed Chair Powell for any insight on how confident the Federal Open Market Committee is in any future interest rate raises. Any allusion to more interest rate hikes from the US central bank could translate to USD strength among forex pairs, while a lack of confidence could mean weakness for the dollar.

GDP Growth Rate - US

Time: 8:30am ET Thursday, June 29th

Previous: 2.6%

Expected: 1.4%

GDP growth is expected to come in much lower than the previous reading - 1.4% compared to 2.6% - as economic measures, including inflation and employment, continue to slow. A stronger-than-expected number could be reason for USD strength, while a measure less than 1.4% might mean dollar downside.

GDP Growth Rate - UK

Time: 2:00am ET Friday, June 30th

Previous: 0.6%

Expected: 0.2%

The UK will report GDP shortly after the US does, which will likely influence what has been a volatile British pound-US dollar market - GBP/USD recently traded to multi-year highs above 1.2800. UK GDP growth is near 0%, and a reading far above or below such a level could lead to GBP strength or weakness, respectively.

Core PCE Price Index - US

Time: 8:30am ET Friday, June 30th

Previous: 4.7%

Expected: 4.7%

The Fed has been quoted as saying that they monitor PCE Price Index levels closely when making interest rate decisions based on inflation. Thus, a higher-than-expected reading could mean higher inflation and result in more interest rate hikes from the FOMC, while a weaker number could influence the Fed toward softer rates sooner than expected.

How to trade economic events

1. Open an account to get started, or practice on a demo account
2. Choose your forex trading platform
3. Open, monitor, and close positions on forex pairs

Trading economic events with forex requires an account with a forex provider like tastyfx. Many traders watch major forex pairs like EUR/USD and USD/JPY for potential opportunities based on economic events such as inflation releases or interest rate decisions. Economic events can produce more volatility for forex pairs, which can mean greater potential profits and losses as risks can increase at these times.

You can help develop your forex trading strategies using resources like tastyfx’s Trading Academy. Once your strategy is developed, you can follow the above steps to opening an account and getting started trading forex.

Your profit or loss is calculated according to your full position size. Leverage will magnify both your profits and losses. It’s important to manage your risks carefully as losses can exceed your deposit. Ensure you understand the risks and benefits associated with trading leveraged products before you start trading with them. Trade using money you’re comfortable losing.

*Data taken from CME Group FedWatch Tool on 6/27/23