Last week, Australia’s RBA became the first developed country to raise interest rates after a short period of pause for interest rate hikes. This we have US CPI and PPI announcements. On the European side, they also have their CPI announcement this week.
This week, the key announcements for EURUSD are as follows.
- 14 Nov ( Tuesday) – US CPI
- 15 Nov (Wednesday) – US PPI, US Retail Sales
- 17 Nov (Friday) – Europe CPI
In last month’s US CPI announcement, it showed little sign of an inflation rebound. As you can see below, the last two CPI were 3.7%, which is higher than the Forecast of 3.6%. This round would be crucial to see whether the rebound of inflation will be extended. If it is, then the USD might turn strong.
Furthermore, the US PPI ( Producer Price Index) will be announced after the CPI. If both indicate a strong rebound of inflation, then the USD would turn out to be very strong. As you can see, the last 3 actual PPI are higher than forecast too although the Oct PPI is lower than Sep one.
For Friday’s Europe CPI, we are not too concerned about it( we could be wrong too), but if you want to play safe. You can stop trading till next week too.
Recommendation
With this outlook, to be on the safe side, for EURUSD, we strongly recommend all Ophiuchus and Limitless EA users to schedule to stop trading for this period starting from 13 Nov till 16 Nov. You can use the stop trading period feature in the EA to do that. You can also decide to start the stop trading for a longer period to wait for the dust to settle. (e.g., stop trading from 13 Nov and only start trading after 18 Nov) if you would like.
We understand that you might feel that it is more frequent to receive market updates recently and more intervention is required to control the EA. We are working on a new feature to manage the stop trading period for EA automatically based on upcoming announcements. Based on our current estimate, the new feature will probably be released at either end of the year or early next year. Please stay tuned for this new feature.
Just a sneak peek for this new feature, in the upcoming release, the Ophiuchus EA will be able to get upcoming news announcements and you will be able to set to stop trading automatically x hours before the news announcements.
Disclaimer – Please note that Limitless Trading is not liable for our recommendation and is not responsible for any loss or profit caused by this recommendation. You should assess your personal circumstances and perform your own research to make decisions for your trading.
