Oct 19 – Economic Events Outlook – Canadian Inflation Takes the Stage!

Posted Friday, October 19, 2018 by
Arslan Butt • 2 min read

Happy Friday, everyone.
We made it through another solid week, thanks to the series of fundamentals, trade war, Italy’s debt crisis and FOMC meeting minutes. You know, the good thing about being a forex trader is that you can make profits even when the market is crashing.

Today, the Canadian dollar remains in highlights due to CPI and Core Retail Sales figures. Considering the NAFTA negotiations and the trade war, it will be interesting to see the performance of the Canadian economy.

Watchlist – Key Economic Events Today

CNY – GDP q/y
At 2:00 (GMT), the National Bureau of Statistics of China released the gross domestic product which was forecast to be 6.6% vs. 6.7% in the month of September. Well, the actual release fell short of expectations and came out at 6.5%.

Looks like the US-China trade war has begun dispensing its impact on China, the world’s second-largest economy. Well, the impact isn’t merely limited to the Chinese Yuan, but the Australian dollar is also getting weaker over this.

JPY – BOJ Gov Kuroda Speaks
The BOJ Governor Haruhiko Kuroda is due to deliver brief remarks at the Japanese Trust Banks Association meeting, in Tokyo at 6:30 (GMT). Being a central bank’s head, any remarks on the upcoming monetary policy can drive fluctuations in the market.

What’s there for us?
Today, the Asian session has traded in narrow ranges so far. The volatility driven by Kuroda may offer us an opportunity to capture some nice trades, especially in the Japanese cross.

CAD – Core Retail Sales m/m
The figure shows a change in the total value of sales at the retail level, excluding automobiles. A higher number of retail sales signals a growth in the economy. The Statistics Canada is due to release the figure at 12:30 (GMT). Canadian retail sales surprised the market with a 0.9% jump in September. Let’s see how it performs this month to determine further trends in the Loonie.

 

CAD – CPI m/m
The Canadian inflation is also suffering lately despite improved crude oil prices. In the month of September, the CPI figure came out at -0.1%, beating down August’s gains of 0.5%. It eventually places pressure on the BOC (Bank of Canada) to keep the interest rates on hold.

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About the author

Arslan Butt is our Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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