May 11 – Economic Events Outlook – Last Trades in the Loonie

Happy Friday, traders. It’s been an amazing week so far. The unexpected drop in U.S. inflation and the dovish BOE has brought us some really great trades. The week isn’t over yet. Today, we have the chance to take our last shots at the Loonie. Brace yourself, there’s going to be some action in the Canadian currency pairs today…

Watchlist – Key Economic Events Today

Canadian Dollar – CAD

Labor Market Report 

Employment Change – Job creation is an important indicator of consumer spending, accounting for the majority of overall economic activity. The Statistics Canada will report the Canadian labor market figures. Employment change is expected to drop to 19.5K vs. 32.3K in April. As we know, the Canadian dollar has strengthened on rising crude oil prices. Thereby, the USD/CAD has oversold and buyers are looking for reasons to jump in. Could this present a good enough reason? As per forecast, it looks like a good chance to go long on the USD/CAD.  

Unemployment Rate – Investors will be eyeing the unemployment figures. It is expected to remain unchanged at 5.8%. The Canadian dollar is likely to remain slightly weaker on sentiments. As we spoke about in our May 11- Signals Brief, the USD/CAD has already completed it’s 50% retracement at $1.2760. The next move depends on the labor market report.

Eurozone – EUR

ECB President Draghi will speak at the 8th edition of The State of the Union, organized by the European University Institute, in Florence at 13:15 (GMT).

U.S. Dollar – USD

Prelim UoM Consumer Sentiment – The University of Michigan will release the consumer sentiment figures at 14:00 (GMT). The forecast for the US consumer sentiment is 98.4, slightly below the previous month’s figure of 98.8. Overall, the higher figure is good for currency.

In his latest press conference in late April, Draghi explained that the Q1 economic slowdown is due to temporary factors. This means Draghi confirmed that growth was indeed weaker and that inflation has decelerated.

In today’s speech, let’s see if he continues to say it’s due to temporary factors or he expresses more concern about the situation.  Any remarks on economic growth and inflation figures could shake the market

Good luck and have an amazing weekend!

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.

Related Articles

EUR/USD Slides to $1.1350—ECB Cut Incoming?

21 hours ago

Save

EUR/USD on the Move—Can It Hit 1.1475 Before ECB?

2 days ago

Save

U.S. Dollar on 5th day Losing Streak

3 days ago

Save

Comments

0 0 votes

Article Rating

Subscribe

Login

Notify of

new follow-up commentsnew replies to my comments

Please login to comment

0 Comments

Oldest

Newest Most Voted

Inline Feedbacks

View all comments