We have witnessed strong volatility in last month’s CPI announcement. Now CPI is coming on this Thursday and PPI is coming on this Friday.
Jun’s CPI YoY was 3.0%, below the forecast of 3.1%. This CPI has caused the USD to turn weak and EURUSD was rebounded from 1.10190 to 1.12430 ( 2240 points) in the next 2 days.
For Jul’s CPI YoY, the consensus is 3.3%, which means the market expects a slight rebound of CPI and inflation. However, if it came out higher than that, it might indicate the return of inflation. That will make USD strong again as US Fed will need to hike the rate to control it.
For PPI, it is the leading indicator of inflation. Hence, stronger than the consensus of 0.2% also indicates the return of inflation.
Recommendation
With this outlook, and to be on the safe side, we strongly recommend all Ophiuchus and Limitless EA users to schedule to stop trading for this series of economic announcements starting from 9 August till 13 Aug. 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 settles. (eg, stop trading from 9 Aug and only start trading after Tuesday) if you would like.
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. This is general advice without considering your personal circumstances. You should assess your personal circumstances and perform your own research to make decisions for your trading.