Quadruple witching is gone and now there are no reasons for the market to hinder. From banks statements and economic data to gas storage reading and Fed’s Powell speech – get ready for active trading.
Canadian economy demonstrates momentum
In October, the Canadian economy managed to surge at a faster-than-anticipated tempo, although evidence of economic momentum heading into the end of 2018 might not be enough to get the country’s key financial institution out of the sidelines because of the recent dive in crude.
In October, the country’s GDP headed north by 0.3% from the previous month, underpinned by strength in insurance, manufacturing, and finance. That’s what Statistics Canada data revealed.
Market experts had hoped that monthly GDP would tack on by up to 0.2%.
Since October, the price of crude, which appears to be one of the country’s key exports, has gone down nearly 40%.
Since July last year the Bank of Canada has had its benchmark interest rate lifted up to five times bringing it to the reading of 1.75%. However, hopes for further tightening were confounded after Canada’s main financial institution left rates intact earlier this month and hinted that the tempo of future lifts could be more gradual.
Financial markets count on 14 basis points of tightening in 2019, in contrast with 43 basis points prior to the December policy announcement.
Market experts still hope annualized fourth-quarter surge would fall short of the major bank’s 2.3% forecast because of crude production trims.
As some market experts pointed out, the data gets along with their 1.7% forecast for Q4 GDP. However, they will require reliable news outside the energy sector to have that mark reached.
On Friday, the Canadian dollar went down reaching a 19-month minimum of 1.3564 to the evergreen buck due to the fact that pressure on equities and the price of crude compensated the firmer-than-anticipated GDP leap.
According to separate data from Statistics Canada, the value of the country’s retail trade managed to leap by 0.3% in October the previous month due to higher sales at car dealers as well as gasoline stations. Market experts had predicted a 0.4% rally.
The Kansas City Federal Reserve announced Friday the annual Jackson Hole symposium will be held virtually, a reversal from prior plans that saw a modified, in-person program…
The Bank of Canada releases a monetary policy statement with an update on the interest rate on June 9, at 17:00 MT time.
The US dollar is heading to close the seventh day in the red as it remains under selling pressure. The US data at 15:30 GMT+3 (jobless claims and Philly Fed Manufacturing Index) may support the greenback if it's strong.
Canada will publish the Retail Sales and Core Retail Sales on October 22, at 15:30 MT time (GMT+3).
The United States will release the weekly Unemployment Claims on October 21, at 15:30 MT time (GMT+3).