Key Economic Events Set to Shake Markets

In the fast-paced world of forex trading, staying ahead of economic data releases is crucial. The second week of September is packed with high-impact events that can move major currencies, commodities, and global indices. From US inflation readings to European Central Bank (ECB) decisions and UK growth data, traders should carefully track these announcements. Here’s a breakdown of what to watch:

On Wednesday, September 10, all eyes will be on the US Core Producer Price Index (PPI) m/m. This measures the change in the selling prices received by domestic producers and is considered an early signal of inflationary pressures. Because it excludes volatile items like food and energy, Core PPI offers a cleaner read on underlying inflation. If the data comes in higher than expected, it could strengthen the US dollar as markets anticipate the Federal Reserve maintaining or even tightening monetary policy. Conversely, a softer figure may weigh on the dollar. Key instruments to watch include USD currency pairs such as EUR/USD, GBP/USD, and USD/JPY, as well as gold (XAU/USD), which often reacts sharply to inflation data.

Thursday, September 11, is set to be the most eventful day of the week. First, the European Central Bank (ECB) will announce its Main Refinancing Rate and publish its Monetary Policy Statement. Traders will look for hints about inflation, growth outlook, and forward guidance on interest rates. Any signs of a more hawkish stance could boost the euro, while dovish signals may pressure it. Later in the day, the US releases a series of inflation figures including Core CPI, CPI m/m, and CPI y/y, alongside Unemployment Claims. Together, these releases provide a comprehensive picture of price pressures and labor market conditions. A strong CPI print could boost the dollar and weigh on gold, while weaker data may signal a softer stance from the Fed, dragging the USD lower. Expect heightened volatility in EUR/USD due to the overlapping impact of ECB decisions and US inflation releases.

Finally, on Friday, September 12, traders will turn their focus to the UK GDP m/m report, which offers an important snapshot of the country’s economic performance. A strong reading could support the pound, while a weaker number might intensify concerns about the UK’s growth outlook. From the US, the University of Michigan’s Preliminary Consumer Sentiment Index and Inflation Expectations will also be released. These indicators provide insight into consumer confidence and how households view future price trends, two factors that the Federal Reserve monitors closely. Higher sentiment and inflation expectations may reinforce USD strength, while weaker readings could weigh on the greenback.

1. Panic Years – Periods of crisis, where speculation unwound, credit tightened, and panic selling dominated.

Key Takeaway for Traders

This week’s forex calendar underscores the importance of inflation, central bank policies, and growth data. Traders should closely monitor the US inflation numbers (PPI, CPI, inflation expectations) for clues about the Fed’s stance, watch for ECB guidance to anticipate euro movements, and track UK GDP for short-term volatility in GBP pairs. With so many impactful events on the horizon, effective risk management—such as using tight stop-losses and following real-time data updates, will be essential to navigate the markets successfully.

Sources:

• Investing.com – Economic Calendar
• Forex Factory – Calendar
• Trading Economics