Good Morning, traders.

Looks like it’s gonna be another busy day as investor focus remains on a series of important economic events from the United States and Canada. Well, before we get into the details, let’s take a look at the market wrap.

Forex Market Wrap

• Headlines on trade talks and tariffs proceed to rule the market sentiment as we move through the week.
• Stock exchange markets had a mixed day as the market anticipates further clarity on the trade negotiations starting later today.
• The major US indices concluded the day:
  • Nasdaq down 0.26%,
  • Dow down 0.16%
  • S&P flat.
• Safe havens continue to gain bullish momentum throughout the day over trade war uncertainty.
• The precious metal gold had continued to gain ground in the risk-averse conditions but sank sharply below the resistance level of 1,290 to close the day back around 1,281.

What’s Next?

Well, the market is most likely to trade the fundamentals from the United States and Canada. Let’s dig deeper now.

CAD – Trade Balance

Today, one of the most highlighted economic events is trade balance data from Canada. At 12:30 GMT, Statistics Canada is due to release the Canadian trade balance.

As you know, Canada is an export-oriented economy, and most of their income comes from the exports of crude oil, but due to the increase in the supply of oil and drop in prices, the Canadian trade balance reported deficits.

For now, the scenario is a bit different as crude oil prices have surged above the $60 level, and this could have increased Canadian revenues. Perhaps, that’s the reason economists are expecting shrinkage in the trade deficit. As per the forecast, the trade deficit is likely to fall to -2.4B vs. -2.9B previously.

USD – Fed Chair Powell Speaks

The US Federal Reserve Chair Powell is due to deliver opening remarks at the Federal Reserve System Community Development Research Conference, in Washington DC at 12:30 GMT.

Well, being the head of a central bank which controls short term interest rates, he has more influence over the nation’s currency value than any other person. That’s why Powell’s speech should be closely monitored for clues about upcoming interest rates.

USD PPI m/m

The producer 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. So, a higher PPI can lead to higher CPI which pressures central banks to release hawkish monetary policies.

Anyway, the current PPI figure is anticipated to grow by 0.2% m/m in April, which is way far below 0.6%, the rate for March.

USD – Core PPI m/m

It also shows a change in the price of finished goods and services sold by producers, excluding food and energy. The figure is due at 12:30 GMT, and it’s also expected to drop from 0.3% to 0.2%. The dollar can trade with a bearish sentiment until the release of actual figures.

That’s it on the fundamentals side, but we have already shared a few forex trading signals. Stay tuned to FX Leaders for more live updates. Good luck!