Fed Chair Jerome Powell will testify today at 19:05 MT time. This event is crucial for traders as the tone of the speech may set the risk tone for the markets for the next two weeks.
CAD is in focus
Canada’s retail sales will be out on October 21 at 15:30 MT time. Get ready with us for this event!
Instruments to trade: USD/CAD, AUD/CAD, CAD/JPY
The Canadian retail sales will increase volatility for the pairs above. If you look at the economic calendar, you will notice that there are two types of retail sales. Core retail sales tend to be more significant as they exclude automobile sales, which distort the underlying trend. Whereas retail sales reveal the total value of sales. The last report came out worse than expected – sales contracted by 0.4%, while analysts forecasted a 0.5% increase. Overall, the Canadian economy has managed to rebound after the enormous downfall with sales in June and July surpassing pre-pandemic levels.
- If Canadian retail sales are higher than the forecasts, the CAD will go up.
- If sales are lower than expected, the CAD will go down.
Non-farm payrolls, the most awaited economic report, will be out on March 5 at 15:30 MT time.
Australian GDP rose by 3.1%, exceeding analysts’ forecasts of 2.5%. The Australian dollar climbed after the release, but then joined its peers in falling against the USD.
Saudi Aramco site was hit by missiles on Sunday - no damage to oil supply was taken, but investor fear drove the price into the upside. Time to trade the cooling off then!
Great news for oil bulls! OPEC and its allied producers agreed to expand output cuts for the next month.
The USD skyrocketed after Fed Powell’s speech. OPEC and allied producers agreed to extend production cuts for another month. Oil surged.