The market takes breath after the long rally. What opportunities do traders have today?
Canada’s CPI and Retail Sales
|Canadian inflation figures are considered to be very important by Forex traders who use CPI release to estimate the likelihood of another rate hike this year. The Bank of Canada is expected to continue raising interest rates, but only as long as price pressures hold up.|
|Canada’s annual inflation rate rose from 1.0% in June to 1.2% in July. Following this release, Canadian central bank raised its interest rate for the first time in 7 years. If CPI number once again exceeds expectations, traders will buy the CAD. If the reading disappoints, Canadian currency will suffer.|
|Retail sales will also be published at 15:30 MT time on September 22. The last release showed that the nation’s retail sales cooled in June after three consecutive months of solid growth. So far, the data doesn’t derail the rate hike prospect, but the CAD will be very sensitive to the indicator’s update.|
The United States will publish a weekly update on unemployment claims on July 9, at 15:30 MT time.
The market sentiment deteriorated amid increasing virus cases in the USA and Australia. Investors prefer safe-haven assets like gold, the US dollar and the Japanese yen.
Riskier currencies and stocks are in favor of investors. Surprisingly, gold rallies too. Let’s have a closer look.
Congratulations! Gold has just opened a new era... or, rather, reopened...
Canada will publish the employment change and the unemployment rate on July 10, at 15:30 MT time.