The Bank of Canada is famous for surprising the market with a sudden increase in the overnight rates. Should we expect the same today? We will get into the expectations below. Besides Canadian monetary policy, we are expecting inflation figures from the UK, Eurozone and New Zealand. Let’s get prepared for today’s economic events.

Watchlist – Key Economic Events Today

Great Britain Pound – GBP

CPI y/y  

The day will begin with the UK’s CPI. The consumer price index shows the change in the price of goods and services purchased by consumers. It looks like the UK is struggling with inflation. In February, the CPI slowed down to an annual pace of 2.7%, yet in between 1-3% range mandated by the BOE (Bank of England). As per economists’ forecast, inflation is expected to remain at 2.7% in March.

Eurozone – EUR

Final CPI y/y

Similarly, investors are advised to look at the final Eurozone CPI figures. The data is due at 9:00 (GMT) with a forecast of 1.4% vs. 1.4% beforehand.

New Zealand – NZD

CPI q/q

The Statistics New Zealand is due to release the inflation figures at 22:45 (GMT). As per economists’ forecast, the CPI is expected to rise by 0.4% vs. 0.1% previously. A better than expected forecast will keep the Kiwi supported.

Canadian Dollar – CAD

BOC Monetary Policy  

The BOC (Bank of Canada) release is the main event to focus on today. As per Stephen Poloz’s recent remarks, though economic outlook points to higher rates over time, “extended policy accommodation” is still needed to sustain momentum for inflation. On another note, the country may see higher growth without triggering inflation.

If we analyze the statement, we can see a clear hawkish sentiment. However, the BOC Canada is widely expected to keep the interest rates on hold at 1.25%. Despite this forecast, we should be ready for any surprise from the BOC.

Summing Up – Today, the economic docket is full of top-tier economic events and it’s going to be really exciting to trade these events. Newbies are suggested to read FX Leaders Trading the Central Bank Strategyfor tips on how to trade today’s events. All the best for today!