ECB rate decision, US CPI data and more this week
Economic calendar summary
Anchoring this week of economic news is an interest rate decision from the European Central Bank on Thursday. The expected decision to pause rate hikes is still up in the air as inflation throughout the Euro Area remains much higher than the ECB's 2% target. A 25bps raise in rates could send strength into the euro, while a hold and dovish messaging from ECB president Lagarde could cause euro weakness.
US consumer price data also arrives this week, giving the Fed a clearer picture on inflation in America ahead of next week's FOMC meeting. Traders may additionally look to GBP pairs early this week as the UK reports labor market statistics and GDP data.
Unemployment Rate - UK
Time: 2:00am ET Tuesday, September 12th
Previous: 4.2%
Expected: 4.3%
Unemployment in the United Kingdom rose to its highest rate since 2021 at last month's reading. Expected to rise again, UK unemployment has come in higher than expected the past two months.
GDP MoM - UK
Time: 2:00am ET Wednesday, September 13th
Previous: 0.5%
Expected: -0.2%
Wednesday's GDP reading after Tuesday's labor market data will give traders a more complete picture of UK's economic health. A strong rebound last month to 0.5%, GDP is expected to contract to -0.2% with this month's reading of July's performance month-over-month.
Core Inflation Rate - US
Time: 8:30am ET Wednesday, September 13th
Previous: 4.7%
Expected: 4.3%
Core inflation is expected to lower to its lowest level since mid-2021. A deviation from the expected drop could guide interest rate decisions from the Fed later this month.
Interest Rate Decision - Euro Area
Time: 8:15am ET Thursday, September 14th
Previous: 4.25%
Expected: 4.25%
After hiking in each of the three previous meetings, the European Central Bank may keep rates at 4.25%. However, a 25bps increase is still a possibility - contracting economic growth and sticky inflation means the ECB could go either way.
Consumer Sentiment - US
Time: 10:00am ET Friday, September 15th
Previous: 69.5
Expected: 69.1
September's preliminary consumer sentiment reading is expected to stay near July's yearlong high of 71.6, and only slightly lower than August's final number - pointing to continued optimism in the US economy.
How to trade economic events
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- Open, monitor, and close positions on forex pairs
Trading forex requires an account with a forex provider like tastyfx. Many traders also 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 YouTube channel. Once your strategy is developed, you can follow the above steps to opening an account and getting started trading forex.
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