Let's look at the news event's we've got lining up this week...
The Bank of Canada (BoC) is the central bank of Canada which is responsible for the stability of the Canadian Dollar currency, full employment, and economic prosperity and welfare of the Australian people. This is the primary tool the BoC uses to communicate with investors about monetary policy, as they discuss the economic outlook and offers clues on the outcome of future decisions.
The BoC is expected to keep interest rates on hold at 0.25% for the time being. However, many are still expecting The BoC to hint at tapering stimulus soon, possibly for their July policy decision if the economic recovery and vaccination rollout continues to progress.
The primary objective of the European Central Bank's (ECB) monetary policy is to maintain price stability. Monetary policy operates by steering short-term interest rates, thereby influencing economic developments, in order to maintain price stability for the euro area over the medium term.
No policy changes are expected from the ECB and policymakers are expected to dodge taper talks. Keep in mind that the eurozone economy isn’t exactly ahead of its peers when it comes to bouncing back from the pandemic. Significant upgrades in growth and inflation could mean some upside for the shared currency.
The USD Consumer Price Index (CPI) report is releasing on Thursday, which measures the change in the average price basket of goods and services by consumers, which can be anything from food, transportation and medical care. Changes in the CPI are used to assess price changes associated with living in the country. It is one of the most used statistics to identify periods of inflation or deflation.
Analysts expect headline inflation to dip from 0.8% to 0.4% in May, while the core version could slide from 0.9% to 0.4%. This could cause additional weakness on the USD considering the latest NFP numbers fell short of estimates once again and could keep FED tapering hopes alive.
9/17/2021 Stocks are down -0.58% this morning after coming down to test a significant level of support once again. While stocks fall, the dollar rises in the anticipation of sooner-than-expected tapering by the Fed along with a hike in interest rates starting in 2022. Our outlook Other than September being one of the worst months […]
9/16/2021 The Euro-Dollar pair is down over 0.5% today after several days in the red. Today's speech by EU president Lagarde mentioned how the economic recovery had come quicker than expected six months ago. This was praised by the prompt vaccine distribution so citizens could get back to work. Across the pond, the US just […]
9/14/2021 This morning's report on CPI m/m and core CPI m/m came in at a lower percentage than expected which resulted in a falling dollar pre-New York session. The USD is now volatile under the uncertainty of potential tapering and rising rates while the equities market seems to be rising because of this. Our outlook […]
9/13/2021 Big money has been moving out of Australia's currency for nearly a month now which has been the biggest drop in long contracts in this amount of time year-to-date. Australia's dollar index (AXY) is up 0.06% at 73.61 on the day after rebounding from the lows around 71.19. Our outlook Australia's economy has surprised […]