Week 7 Exness economic calendar report 2025
By Paul Reid
This week is poised for significant shifts as traders and investors anticipate a series of important economic reports. Understanding these reports will be crucial for navigating the markets effectively.
Consumer Price Index (CPI) – February 14, 2025, 8:30 AM GMT
The CPI, a critical measure of inflation, is set to be released and has previously indicated rising inflationary pressures. Such increases often lead to speculation about the Federal Reserve's future actions, particularly regarding interest rates. Last month's report showed higher inflation than expected, strengthening the dollar and affecting bond yields as the market adjusted its expectations for interest rate hikes. This upcoming release will be pivotal, as continued inflation could confirm the necessity for further tightening of monetary policy. Affected assets include the US Dollar, US Treasuries, and stock indices.
Retail Sales – February 14, 2025, 8:30 AM GMT
Also scheduled for February 14 are the Retail Sales data, which provide insights into consumer spending health. With the previous report revealing a modest increase, there's evidence of sustained consumer confidence. Positive retail sales typically boost market sentiment, propelling the stock market and the dollar as they reflect optimism about economic health. A continuation of this trend could signal enduring economic strength, particularly influencing consumer discretionary stocks and ETFs related to retail sectors. Traders should watch for implications on the US Dollar and consumer-focused stocks.
Producer Price Index (PPI) – February 15, 2025, 8:30 AM GMT
The PPI, which measures the average change in selling prices received by domestic producers, is due out on February 15. The last report showed a moderate increase, indicating controlled cost pressures at the production level. This data is less directly impactful than CPI but still important for understanding inflation's trajectory, which influences Federal Reserve policy decisions. Significant changes in PPI can provide early signals of shifts in consumer prices, affecting bonds, stock indices, and commodities. Market participants will need to consider potential impacts on inflation expectations and monetary policy.
Conclusion
It’s imperative for traders to maintain a discerning approach. The CPI is sometimes a manipulated gauge used to influence not just market sentiment but also Federal Reserve policy directions. A reported increase in inflation could be a strategic move to precondition the market for future rate hikes, potentially misleading investors about the urgency of inflationary pressures.
An anticipated increase in interest rates typically strengthens USD as investors expect higher returns from dollar-denominated assets. This move would attract both domestic and international investors seeking better yields, thereby boosting the currency's value.
The strengthening of the USD against other major currencies could lead to significant shifts in the Forex market. Emerging market currencies, in particular, might depreciate due to increased costs of servicing USD-denominated debt.
Commodities like USOIL and gold (XAU), which are priced in USD, might experience price adjustments. Gold typically decreases in value with rising interest rates as it yields no returns and investors move to yield-bearing assets. Conversely, oil prices could fluctuate based on the broader economic implications of higher rates affecting global economic growth.
For traders, these reports are a double-edged sword. While they provide crucial data, the context in which they are released—potentially shaped by unseen economic or political agendas—could lead to misguided investment decisions. Traders should compare these figures with other economic indicators, seek out independent analyses, and remain cautious of the market's initial reactions. Typically, market reactions are heated but short lived, so be ready to react.
To boost your ability to grab entry points at the right time consider having a trading app on your phone. Stay in sync with real-time market movements, so you're never out of touch when quick decisions matter most.
Remember, when the market seems unpredictable, it’s best to slow down. You are not obliged to trade every day. Rather than risking your capital, shift to a risk-free demo account and experiment with your approach. This will allow you to build confidence and learn, without the pressure of potential losses.
This is not investment advice. Past performance is not an indication of future results. Your capital is at risk, please trade responsibly.
Author:
Paul Reid
Paul Reid is a financial journalist dedicated to uncovering hidden fundamental connections that can give traders an advantage. Focusing primarily on the stock market, Paul's instincts for identifying major company shifts is well established from following the financial markets for over a decade.