Hey TGFX Family,
More big news dropping this week! As traders we should keep a close eye on three major events that could have a significant impact on the financial markets – Inflation, the debt ceiling issue, and Nonfarm Payrolls (NFP).
The Consumer Price Index (CPI) report for April, scheduled to be released on Wednesday, May 10th, is expected to show an increase in prices, particularly in the energy and food sectors. Rising inflation can have a significant impact on the market and the value of the US dollar. As we have seen in the past CPI has proven to be very volatile and continues to shake up the market. Depending how the data plays out we may see another big shift in the market sentiment to be a key driver for the overall direction of price movement this week.
The US government’s debt ceiling issue has continued come into focus. The US Treasury has reached its debt limit and needs to increase it to continue borrowing money. Failure to increase the debt ceiling could lead to a default on US debt, which could cause a severe impact on the financial markets. Congress is expected to take action this week to raise the debt ceiling.
The Consumer Price Index (CPI) report for April, scheduled to be released on Wednesday, May 10th, is expected to show an increase in prices, particularly in the energy and food sectors. Rising inflation can have a significant impact on the market and the value of the US dollar. As we have seen in the past CPI has proven to be very volatile and continues to shake up the market. Depending how the data plays out we may see another big shift in the market sentiment to be a key driver for the overall direction of price movement this week.
The US government’s debt ceiling issue has continued come into focus. The US Treasury has reached its debt limit and needs to increase it to continue borrowing money. Failure to increase the debt ceiling could lead to a default on US debt, which could cause a severe impact on the financial markets. Congress is expected to take action this week to raise the debt ceiling.
We can also take into consideration from the recent Nonfarm Payrolls report, released on May 5th. The report showed that the economy added 266,000 jobs in April, falling short of the 1 million jobs that were expected. This led to a small rise in the US dollar.
Overall, we should be prepared for a volatile week. Keeping an eye on these key economic events, such as inflation, the debt ceiling issue, and NFP, can help us as traders make informed decisions and adapt to the changing market conditions.
Which way can you see the dollar trading after these releases this week? Remember to manage your risk correctly and capitalize on these opportunities of volatility this week!
Best regards,
TGFX Trading Team