April 10 – Economic Events Outlook – US PPI Highlighted!
Arslan Butt • 2 min read
The US dollar is tossing in profits and losses after mixed remarks from China and the USA. The recovery in equities and cryptocurrencies weakened the demand for safe-haven assets. This is keeping Gold on hold near $1,333. Investors will be monitoring the high impact economic events from the US and Canada today. Let’s take a quick look!
Today’s Economic Events Watchlist
US Dollar – USD
The producer’s price index is considered a leading indicator of consumer inflation. When producers charge extra for goods and services the higher costs are usually passed on to the consumer. Higher PPI can lead to higher CPI which pressures central banks to favour hawkish monetary policies.
Anyways, the current PPI figure is anticipated to grow by 0.1% m/m in March, which is half of the rate in February.
Core PPI m/m
Core PPI also shows a change in the price of finished goods and services sold by producers; however this figure excludes food and energy. The figure is due at 12:30 (GMT) and is expected to repeat the previous gain of 0.2%.
Canadian Dollar – CAD
Building Permits m/m
At 12:30 (GMT), Statistics Canada is due to release the figures regarding new building permits issued over the previous month. For beginners, the building permit is an excellent measure of future construction activity as getting a permit is among the first steps in constructing a new building.
Canadian building permits are expected to sink by -1.5% vs. 5.6% beforehand. The figure is dramatically low and can put pressure on BOC (Bank of Canada) to keep the monetary policy dovish. Although, it takes time to see changes in monetary policy, but the sentiments will play the trick.
Summing Up – Once gain, the market is likely to consolidate in narrow ranges due to lack of top-tier catalysts. We are looking to share quick forex trading signals to help you out. Stay tuned and have a pleasant day!