At the start of every trading week, we comb the upcoming economic calendar for the highest-impact items in the world. Find out what’s coming up next.
Economic calendar summary
This week, the US releases its most current inflation and consumer sentiment data. The Bank of Canada will decide on Wednesday whether to raise interest rates once again. Finally, the UK provides its unemployment and GDP growth in a week that could see price action in GBP/USD, USD/CAD, and other major forex pairs.
Unemployment Change - UK
Time: 2:00am ET Tuesday, July 11th
Unemployment change in the United Kingdom has remained positive over the past six readings, and is expected to continue the trend. A deviation from the projected 151k could be cause for price action in GBP/USD which continues to trade at a yearlong high.
Practice trading economic events using a demo account
Core Inflation Rate - US
Time: 8:30am ET Wednesday, July 12th
With the continued restrictive monetary policy in the US, another drop in core inflation is forecasted this month. The Fed will look to this reading to gauge how effective their rate hikes have been thus far.
Interest Rate Decision - Canada
Time: 10:00am ET Wednesday, July 12th
After a surprise 25 bps hike at the last Bank of Canada meeting, forecasters are anticipating another hike this week. Traders will likely look to USD/CAD which has recently bounced back from its 2023 lows of under 1.3200.
GDP Growth - UK
Time: 2:00am ET Thursday, July 13th
Year-over-year GDP growth provides the second major data release out of the UK this week. Hovering around 0.5% for the first half of 2023, a diversion from the projected negative growth rate could cause movement in GBP pairs.
Consumer Sentiment - US
Time: 10:00am ET Friday, July 14th
US consumer sentiment is expected to rise again to 64.5 as inflation continues to soften. Measuring both current and future expectations, traders can look to this reading to see how consumers are reacting to the ongoing actions of the Fed.
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 IG. 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 IG’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.
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