US Core monthly retails sales will be announced on Friday at 15:30 MT time.
Will the Canadian monthly CPI boost the CAD?
Canadian monthly CPI is announced on Wednesday at 15:30 MT time.
Instruments to trade: USD/CAD, NZD/CAD, GBP/CAD, CAD/JPY
April’s CPI in Canada plunged to -0.2% in April after a step down to 0.9% the month before. Before, an average of 2% was a commonly expected price level. Now, all hopes are on the May release: observers are looking for signs of recovery in the Canadian economy, and the increase in the level of prices would indicate that things are improving. The market will be careful with setting its estimates for the coming release hence even a slight difference into the positive zone will make this indicator boost the CAD in the short-term.
- If the CPI shows improvements, the CAD will rise.
- If the CPI is depressive, the CAD will fall.
Stock significantly surged: S&P 500 and Nasdaq reached 6-week highs. The market sentiment may deteriorate today as Johnson & Johnson’s Covid-19 vaccine trails have been stopped because of the unexplained illness.
The Australian jobs data is announced on Thursday at 03:30 MT time.
The market is resilient ahead of the speeches of Fed’s Powell and ECB President Lagarde, but there are still interesting movements.
The uncertainty over US fiscal stimulus and Brexit, and also rising new virus cases deteriorated the market mood. That’s why we can expect the further rally of the US dollar and the fall of riskier assets today.
The market sentiment is mixed, but there are still interesting movements on the market.