Let's look at the news event's we've got lining up this week...
A Gross Domestic Product (GDP) report is a measure of the size and health of a country's economy over a period of time. The figure sums up the country's performance in terms of trade, consumer activity, government spending and investment during a particular period.
Analysts are expecting the Canadian economy to print a negative reading for their next monthly GDP reading at -0.8%, which is much slower compared to last months reading at 1.1%. A reading that is stronger than forecast is generally supportive for the CAD, while a weaker forecast reading is generally negative for the CAD. The outcome of this event is used as an indicator of the national economy state and of the standard of living.
Every month, the Organisation of Petroleum Exporting Countries (OPEC) and the Joint Ministerial Monitoring Committee (JMMC) have a meeting to discuss the outlook of Oil and its performance. OPEC aims to control the price of oil by adjusting supply volumes. If its members want to increase the price of oil, they can revise their production quotas downwards to limit supply.
WTI Crude Oil is currently hovering at around $70/barrel, oil traders are keen to find out what the OPEC are planning next. Any indication that they're looking to adjust its output deal might revive oversupply concerns, which will likely weigh on crude oil prices.
The Non-Farm Payroll (NFP) or also known as Non-Farm Employment Change data, released by the Bureau of Labor Statistics, is a key economic indicator for the US economy which represents the number of jobs added to US citizens, excluding farm, government, private household and non-profit organisation employees.
NFP data always causes a commotion in FX as it is an important indicator for the Federal Reserve Bank. When unemployment is high, policymakers tend to have an expansionary (stimulatory, with low-interest rates) monetary policy with the goal to increase economic output and increase employment.
Analysts are expecting hiring to print at 700k versus last months weaker-than-expected 559k gain. This is also expected to bring the unemployment rate down by 0.1% from 5.8% to 5.7%.
The past couple of NFP reports haven't turned out as well as expected, and the FOMC acknowledged the pickup in inflation but warned that they need to see stronger employment figures before they can just monetary policy. Traders are looking for clues whether the Fed could taper soon and hence this event is likely going to cause great volatility on Friday on major pairs.
As this week comes to a close, we are looking ahead at future setups that could be some of the best opportunities for the next several trading sessions. Here are some pairs for next week that we are looking at. EUR/JPY Recent data has shown a slow down in the German manufacturing sector. With European […]
When it comes to testimonies, it's all in how you say it. Jerome Powell has to be very particular in the way he makes his statements and answers the ensuing questions. Here is what might be in store for the market in the coming days and weeks, and whether or not there will be more […]
The historically 'safe' currency to hold in times of recessions is in a unique situation now with a couple factors in place. Here is why the yen is stronger today as well as some trade setups that could push its value either up or down. Weaker Yen Now, Stronger Yen Later The Bank of Japan […]
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