Forex Account – A forex analyst Matthew Strauss in RBC pointed out on Friday (August 13) that compared with the present condition in US and the condition for Japan in the past ten years, it would be undeniable that the US CPI index which would be released later in the forex market would bring large risk events to the forex market.
He said when the forex market were learning the experience from Japan to fight against the inflation acquired in the past decade, and was discussing the possibility of US economic growth intimidated by the inflation in the forex market, the US CPI index data which would be released later would be the major elements to affect the forex price of USD in this trading session in the forex market, and its importance might not be less than the retail sales data in the forex market.
And the two data would both be released at 20:30 Beijing time.
Strauss predicted the even or slumped CPI data might indicate a more serious inflation crisis. It would not be quite difficult for the weak CPI data not to bring any negative effects to the forex price of USD in the forex market. And the viscous inflation data would not always be a good news in the forex market, because it meat that even though it would not happen at present but sooner or later it would occur and would definitely affect the forex trend of USD in the forex market.
He said that it was unavoidable for the forex rate of EUR/USD to slump to 1.2777 in the forex market.
The forex rate of EUR/USD was at 1.2834/39 at 09:56 Beijing time.
Edited by Laura.