Aug 31 – Economic Events Outlook – Dollar and Euro Under the Spotlight  

Happy Friday, traders.

Trading is all about Loonie and Euro today as the economic docket is loaded with a series of medium impact economic events from Eurozone and the US Dollar. The retail sales and CPI figures from the Eurozone share the stage. In this update, we are going to see to what to expect from European inflation and how to trade the US Chicago PMI data. Are you up for it?     

Watchlist – Key Economic Events Today

Eurozone – EUR

German Retail Sales m/m – At 7:00 (GMT), the Destatis is due to release the German retail sales data. It shows a change in the total value of inflation-adjusted sales at the retail level, excluding automobiles and gas stations. Data is expected to show a drop of -0.1% vs. 1.2% in July. Let’s see what we get next.

CPI Flash Estimate y/y – The final figures for July dispensed an insignificant acceleration in inflation: 2.1% on the headline and 1.1% on core inflation. The gap shows an essential increase in energy prices. We will now get the preliminary data for August which will serve as important input for the ECB in its September meeting. A repeat of the same numbers is expected.

Potential Impact: The single currency Euro can remain under selling pressure as most of the figures are forecast to be negative to neutral. This is the main reason why ECB feels hesitant to raise the interest rates.

Canadian Dollar – CAD

RMPI m/m – The Statistics Canada is due to release the raw materials price index at 13:30 (GMT). It shows a change in the price of raw materials purchased by manufacturers. As per economists’ forecast, the data is expected to fall from 0.5% vs. 0.0%, which can please a bearish impact on the Loonie.

US Dollar – USD

Chicago PMI – The ISM-Chicago, Inc will be releasing the Purchasing Managers’ Index today at 14:45 (GMT). It’s very hard to trade this news as the figures are given to MNI subscribers three minutes before the public release time listed on the calendar – the early market reaction is usually a result of trades made by these subscribers. Whereas, the intra-day traders like us can’t do much later. The above 50.0 indicates expansion, while below indicates contraction.

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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