Economic events this week: The Fed's preferred inflation gauge and more
Economic calendar summary
In the wake of last week's Jackson Hole Symposium, traders have a directed attention at key metrics releasing this week. Fed chair Powell spoke to the importance of Core PCE, and ECB president Lagarde emphasized the fight against inflation is far from over. US Core PCE and Euro area inflation will both release Thursday morning, likely sending volatility into EUR/USD.
Labor market data throughout the week could also affect USD pairs. Job openings on Tuesday and Non Farm Payrolls on Friday are both expected to drop from last month's readings.
Unemployment Rate - Japan
Time: 7:30pm ET Monday, August 28th
Previous: 2.5%
Expected: 2.5%
Unemployment in Japan is expected to remain the same this month after dropping last month. Japanese yen could use a strong number to start the week as it continues to trade near multi-year lows against several major currencies.
Job Openings - US
Time: 10:00am ET Tuesday, August 29th
Previous: 9.582M
Expected: 9.465M
US job openings fell to multi-year lows last month and are expected to drop even lower. The first labor market statistic of the week, US dollar pairs could see movement if this number deviates from expectations.
Inflation Rate - Euro Area
Time: 5:00am ET Thursday, August 31st
Previous: 5.3%
Expected: 5.1%
Last Friday, ECB President Lagarde emphasized that the fight against inflation is not yet over. All eyes will be on this flash inflation reading as a result, and likewise traders will look to EUR pairs for potential price action.
Core PCE Price index - US
Time: 8:30am ET Thursday, August 31th
Previous: 4.1%
Expected: 4.2%
Last week in Jackson Hole, Fed Chair Powell spoke directly to last month's Core PCE report and its importance for gauging the state of inflation in the US. This Thursday, headline Core PCE year-over-year is expected to rebound slightly to 4.2%. This metric, along with several other minor US data points releasing at the same time, will likely cause price action in USD pairs.
Non Farm Payrolls - US
Time: 8:30am ET Friday, September 1st
Previous: 187K
Expected: 170K
Payroll data has come in below market expectation the past two months. With a 17K drop in jobs expected - a miss below expectations this month could spell a big slow down that may translate to USD weakness. Conversely, a higher number may push an already strong dollar even further.
How to trade economic events
- Open an account to get started, or practice on a demo account
- Choose your forex trading platform
- Open, monitor, and close positions on forex pairs
Trading forex requires an account with a forex provider like tastyfx. Many traders also 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 tastyfx’s YouTube channel. 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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