There are some expected high impact news events occurring in the next couple of days. We have the Australian CPI coming out early tomorrow. The Consumer Price Index is considered a key indicator measuring inflations as well as purchasing trends. A high CPI would be bullish and a low CPI would be bearish for the Australian dollar.
The Bank of England’s Monetary Policy Committee sets the interest rates and will also vote tomorrow. New Zealand also has interest rate decision at the end of Wednesday. If the outlook for the economy is strong, it raises the likelihood of increasing inflation. Usually interest rates are raised in order to keep inflation in check. The rise of interest rates is considered positive or bullish for the underlying currency.
For Thursday, the European Central Bank’s President is giving a press conference of how the ECB observes the European economy. His comments can impact the short-term trend of the Euro. His remarks will be followed by the US releasing its Durable Goods Orders for March. Durable goods are considered products that involve large investments for planned use of a number of years such as cars or major appliances. As the economy strengthens, more durable goods are likely to be purchased. This would be a bullish indicator for the US dollar.
At the end of Thursday, Japan’s CPI for March will be released. As mentioned earlier, CPI is significant in measuring purchasing trends of goods and services.
The expected impacts of these news events are all high, based on historical data compiled over the last 10 years. The impacts are quick with high volatility that lasts a short time – usually 1-2 hours.
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