The Canadian monthly GDP is announced on Wednesday at 15:30 MT time.
Canadian dollar stands still
On Friday, the Canadian dollar stood still, having demonstrated steep losses on Thursday. In North American trade, the currency pair USD/CAD showed 1.3066, losing nearly 0.11%.
Market participants are set for mixed outcomes from durable products reports for July. As for core durable goods, they’re expected to soar to 0.5%. Durable products are anticipated to dip, losing approximately 0.7%. Traders will closely watch Federal Chair Jerome Powell’s speech at the economic meeting at Jackson Hole.
This week the Canadian currency has demonstrated considerable volatility and slumped by 0.62% on Thursday. The sink turned out to be a response to another wave of duties between China and America that came into effect on Thursday. The duties, valued at approximately $16 billion, showed up notwithstanding the fact that the sides were holding low-level trade negotiations at the same time. As anticipated, the negotiations didn’t bring any positive outcome. The further escalation in trade sanctions is undoubtedly a bad thing for the export-reliant Canadian economy. Additionally, it’s also putting pressure on investor risk appetite for minor currencies, including Canada’s currency. If American imposes further duties on its trading partners, then the Canadian dollar is going to sailing into mighty headwinds.
The key US financial institution came up with the minutes of its July gathering, at which policymakers left the benchmark rate on hold. The minutes stressed that the American economy is firm enough and hinted that the Federal Reserve would have rates increased in September. However, policymakers told that the plan to proceed with gradual rate lifts could have to be stopped if the global trade conflict escalates, as the trade feud represents a key hazard to the American economy. Fed Chair Powell is believed to refer to trade clashes and also the fact that wage surge and inflation have lagged, notwithstanding a booming American economy.
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.
The European Central Bank publishes its monetary policy statement that includes an announcement of the interest rate on March 11, at 14:45 MT time.