The Canadian monthly GDP is announced on Wednesday at 15:30 MT time.
The loonie awaits the important release
Canada will release the level of CPI on August 21, at 15:30 MT time.
The consumer price index is defined as the change in the prices of goods and services that are usually purchased by a customer. It accounts for the majority of overall inflation. Last time, the indicator declined by 0.2%. Despite that, the release was still better than the forecast of -0.3%. As a result, the Canadian dollar strengthened.
• If the level of CPI is higher than the forecasts, the CAD will rise;
• If the level of CPI is lower than the forecasts, the CAD will fall.
The market optimism waned amid stricter restrictions to control rising coronavirus infections. S&P 500 and Nasdaq dropped from the all-time highs, while the USD jumped higher.
S&P 500 skyrocketed to the all-time high on optimism that Biden’s fiscal stimulus will support economic growth and boost corporate earnings.
PMI reports from the EU, the UK, and the USA will be released during the day!