Market Opportunities : Week 08-05-2023 - 12-05-2023

USDIDX: United States Consumer Price Index (CPI) report on May 10 is an important event for forex markets. Investors will be watching closely to see whether the consumer inflation continued to accelerate or not. In case the inflation rises from the previous reading of 0.1% over month this may give some reason for the Federal Reserve to lean toward further rate hikes - otherwise USDIDX will get a bearish impulse.

GBPUSD: Bank of England (BOE) interest rate decision due on May 11 is the key economic event of May 8 -12 week. BOE raised interest rate at its March meeting and there is no consensus whether the central bank may pause rate hikes at current 4.25% rate or will raise rates farther. The latest Consumer Price Index (CPI) inflation reading of 10.1 per cent for March 2023 was much higher than the 2 per cent inflation target. And a decision to raise rates will be bullish for GBPUSD.