IMF downgraded its projections for the Euro Area. Economists predict that the EU will get back to the pre-pandemic levels only by the end of 2022.
Canadian economy manages to pick up
In the second quarter, the Canadian economy managed to expand at the fastest tempo for one year because exports rallied. That’s what data from Statistics Canada disclosed on Thursday. However, the improved surge wasn’t anticipated to trigger another interest lift next week from the Bank of Canada.
The country’s gross domestic product tacked on at an annualized rate of 2.9% in the second quarter of 2018. The given outcome is short of market experts’ hopes for 3%, although ahead of the Bank of Canada's forecast of 2.8%.
It’s a bit below hopes, although still indicating a doubling of the surge rate relative to this point within the first quarter, as some financial analysts pointed out.
The country’s key financial institution is geared up towards tightening further, although the bank stressed that the pace would be gradual. Some market experts are assured that the bank is going to remain on the sidelines in September. However, there’s a likelihood that a powerful move can show up on October if the data keep demonstrating firm underlying strength.
Canada’s key financial institution that has had interest rates lifted four times since July last year will come up with a decision on its interest rates on Wednesday.
The likelihood of a rate lift at that gathering dived to less than 20% from 23% before the data, as follows from the overnight index swaps market.
Besides this, the Canadian dollar that has been spurred this week by upbeat mood that a trilateral deal to have the North American Free Trade Agreement revamped could be finally reached, slumped by nearly 0.6% versus its American rival.
The surge in the second quarter appeared to be the fastest since the same period of 2017, while the first-quarter surge was updated upwards from 1.3% to 1.4%.
US Core monthly retails sales will be announced on Friday at 15:30 MT time.
Banks are reporting next week: JPMorgan and Citigroup on Tuesday (15:30 MT and 17:00 respectively), and Bank of America on Wednesday (15:30 MT). What do we have in store?
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.