The US Inflation Is in Focus Again
The United States will publish Core PCE Price Index on Thursday at 15:30 GMT+2.
CAD: is Canadian GDP puzzled?
Canadian monthly GDP will be out at 15:30 MT time on Friday.
Instruments to trade: USD/CAD, NZD/CAD, CAD/JPY, EUR/CAD
Monthly GDP is the primary economic indicator for any country. For Canada, it has been declining since March 2018. Only the November figure broke the trend and rose to the level of 0.1%. That surprised the market, which believed there would be nothing better than 0% at that time. However, many say that the reason why the GDP rate gained was unusually cold weather in November, which boosted the utilities sector and pushed the GDP. Strategically, the fundamentals in the last quarter of 2020 are more depressive than promising, especially in view of the rail strikes and pipeline ruptures that have kept happening in Canada up until now. On the other side, the US President is pressing on the USMCA alliance, which should bolster the Canadian economy in the long-term. Therefore, it will be safe to expect a very modest monthly GDP growth in December.
- If the monthly GDP exceeds the market forecast, the CAD will gain value;
- If the monthly GDP undershoots the forecast, the CAD will decline.
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Final Opportunity for the CAD
Canada will post Retail Sales and Core Retail Sales on December 21, at 15:30 GMT+2.
Bank of England’s Statement
The Bank of England will announce its policy statement on December 16, Thursday, at 14:00 GMT+2 (MetaTrader time). It will affect all the pairs with the British pound.
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Post-Fed Releases for USD & CAD Traders
Main news that will drive the market in the upcoming week include CB Consumer Confidence Index, Canadian GDP, and US Core PCE Price Index
FED and BOE Make Another Attempt to Beat Inflation
The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.
