Good morning, fellas.

Today, the investors’ focus stays on the high impact fundamentals especially the US inflation which typically causes massive price action. Tighten your seat belts and get ready to trade the following top economic events…  

Watchlist – Top Economic Events

New Zealand – NZD

RBNZ Gov Spencer delivered a speech titled “getting the best out of macro-prudential policy” at the Reserve Bank of New Zealand. He remarked that the macroprudential policies are somewhat of an alternative to the more blunt means of hiking interest rates. Macroprudential policies are related to limiting the lending.

Highlights

TreasurySpencer seems keen to see macro-prudential policies develop as a credible and sustainable policy. Consequently, the New Zealand Dollar is getting stronger among its peers.

Great Britain Pound – GBP

Annual Budget Release – This document outlines the government’s budget for the year, including expected spending and income levels, borrowing levels, financial objectives, and planned investments. The treasury is expected to release the report at 12:30 (GMT).

Domestic government spending and borrowing levels can have a significant impact on the economy. The more they spend, the more job opportunities created. Ultimately it’s good for currency & the economy.

US Dollar – USD

The US dollar succeeded to gain some footing this week as Korean geopolitical risks and trade war fears lightened. Today, the economic indicators have the potential to extend the Greenback’s recovery as CPI and Core CPI gauges come to the forefront.

CPI m/m – At 13:30 (GMT), the Bureau of Labor Statistics is scheduled to release the CPI data. This is one of the primary gauges of the country’s economic health and shows a change in the price of goods and services purchased by consumers.

Back in January, the wages and inflation figures came out better than expected, increasing the chances of further rate hikes. As you know, the wages have dropped along with mixed labor market reports. Now the big question is, what should we expect now? Core CPI is anticipated to remain stable at 1.8% y/y and increase by 0.2% m/m after a previous figure of 0.3%. The CPI m/m is also expected to increase to 0.2% vs. 0.5% in Jan.

Looking at the forecast, it’s pretty clear that economists are expecting a slower growth in the inflation figures. It will be interesting to trade any divergence between the actual release and the forecast, especially if it’s more than 0.4 – 0.5%.

Canadian Dollar – CAD

BOC Gov Poloz is planned to deliver a speech titled “today’s Labour Market and the Future of Work” at Queen’s University, in Ontario at 15:15 (GMT). Audience questions are expected along with volatility.

Check out FX Leaders News Trading Strategy for the best tips in trading the news before today’s economic events. Good luck and stay tuned for more updates.