Canada will publish the monthly GDP growth on March 31, at 15:30 MT time.
Chinese data is full of surprises
China will publish manufacturing and non-manufacturing PMIs on December 31, at 3:00 MT time.
Instruments to trade: USD/CNH, EUR/CNH
Manufacturing and non-manufacturing PMIs are indicators that show how businesses in China see the current situation in the industry. Their calculations are based on surveys of a big number of purchasing managers in the manufacturing and services industries. If the index is bigger than 50, the industry is expanding. Alternatively, if the index is lower than 50, the industry is contracting. Besides indicators' direct impact on the Chinese yuan, these indicators tend to determine the risk sentiment during the Asian trading session. Last time, both indicators came out higher than the forecasts. While manufacturing PMI reached 52.1 (vs. the forecast of 51.6), non-manufacturing PMI rose to 56.4 (vs. 56 points expected). Despite that, the CNH weakened back then. This time, due to the lack of events and pre-holiday mood, the situation may be completely different.
- If the indicators are higher than the forecasts, the CNH will strengthen;
- In case of an alternative scenario, CNH will weaken.
The US dollar is heading for the best week in three. The market sentiment is mixed as optimism about the global economic recovery was outshined by increasing tensions between the West and China.
Rising yields, potential US tax hikes, and inflation fears worry investors. As a result, the market sentiment is risk-off. Stocks are falling, while the USD and the JPY are edging higher.
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The European Central Bank is holding a meeting on April 22 at 14:45 MT time. What to watch?
The Bank of Canada (BOC) will publish the rate statement and the update on the interest rate on April 21, at 17:00 MT time.