Fed Chair Jerome Powell’s comments on the Jackson Hole Symposium resulted in the worst weekly candle in US500 since June.
What’s New About Canadian CPI?
What will happen?
Statistics Canada will release Consumer Price Index (CPI) on Wednesday, April 20 at 15:30 MT time. It’s a monthly release, usually published on the third Wednesday of the next month. CPI is the most important inflation-related release due to its earliness and wide coverage. Moreover, it’s one of the few numbers in the calendar that excludes seasonality.
How will it move CAD?
Canada is struggling with inflation, just like other leading countries. Now the inflation is at 5.7%, and the economists suppose it’s not the peak yet. Due to the Russian-Ukrainian conflict, Canada is experiencing obstacles with the supply of goods and commodities. As a result, in February of 2022, the consumers paid higher gasoline and groceries prices than the same month a year earlier. Housing costs continue to rise, increasing at the fastest annual rate since August 1983.
The previous month’s result was slightly higher than expected, 1.0% vs. 0.9%. Due to the high forecasts, the CAD has been steadily growing since March 8. The sustainable growth of the currency means it is not affected much by releases.
How to trade on CAD CPI release?
Even if the previous results might not move the CAD crucially, anything could happen.
- If the CPI is high, the CAD will rise.
- If the CPI is depressive, the CAD will fall.
Check the Economic Calendar
Instruments to trade: USDCAD, EURCAD, CADJPY
Last week several important economic updates influenced the Forex market. US preliminary GDP fell less than expected (0.6% actual vs. 0.7% forecast). Below you will find the key events to trade on during the week from August 29 to September 2.
The United States will publish the Inflation Rate and Core Inflation Rate, also known as US CPI and Core CPI, on August 10 at 15:30 GMT+3.
Main news that will drive the market in the upcoming week include CB Consumer Confidence Index, Canadian GDP, and US Core PCE Price Index
The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.
Every week we expect many interesting events that can shake the market.