Jan 31 – Trading US FOMC, European CPI & Canadian GDP

Good morning. Today’s economic calendar is saddled with high impact data sets from the United States, Eurozone, and Canada. Let’s find out what to expect and how to trade these events…

Major Economic Events Today

US Dollar – USD

President Trump is due to deliver “The State of the Union Address,” in Washington DC at 2:00 (GMT). Nevertheless, investors focus will remain on the ADP Non-Farm Employment Change at 13:15 (GMT) and FOMC Statement at 19:00 (GMT).

ADP Non-Farm Employment Change – Last month the US economy added 250K jobs but as per ADP estimates, this figure is likely to drop to 186K this month.

FOMC Statement – FOMC isn’t expected to drive much volatility today as investors aren’t expecting any change in the Fed Fund Rate. The next rate hike from the Fed is expected in March 2018. However, it’s still worth seeing the FOMC statement for further clues.

Crude Oil Inventories – For Crude lovers, this could be an opportunity to go long on the oversold commodity. The EIA (Energy Information Administration) will be releasing the stockpiles report at 15:30 (GMT). Oil typically moves more than 100 pips on the release of this report.

Eurozone – EUR

We may have some good opportunities in the Euro currency pairs on the back of German Retail Sales and CPI Flash Estimate.

CPI Flash Estimate y/y – The data is due at 10:00 (GMT) with a negative forecast of 1.3% vs. 1.4% last month.

German Retail Sales m/m – The German retail sales are forecasted to be -0.3% which is well below 2.3% last month. Both of these data sets are likely to weigh on the single currency.

Canadian Dollar – CAD

GDP – The Canadian GDP is due at 13:30 (GMT) with a forecast 0.4% vs. 0% last month. A divergence of up to 0.5% on any side is likely to cause nearly 100 pips movement in the Loonie.

Summing up, the market is likely to exhibit high volatility and trading volume. Investors are advised to place trades very carefully after taking risk management into consideration. Good luck today!

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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