Daily Brief, Oct 1: Economic Events Outlook – Canadian GDP in Highlights
Arslan Butt • 2 min read
On Tuesday, the US dollar gained bullish momentum, which worked in our favor to capture quick green pips in the precious metal gold. Overall, the greenback traded near its highest in two weeks against the safe-haven currency Japanese yen prior to the release of most awaited NFP figures.
The US manufacturing sector shifted to growth, easing the sentiment of an impact of the ongoing Sino-US trade war.
- One of the most anticipated and high impact economic events was the cash rate from the Reserve Bank of Australia. The RBA has decreased the interest rate by 0.25% to a record low of 0.75%.
- Fellas, it’s the third time the RBA is cutting the interest rate in 2019.
- Governor Philip Lowe announced the economy is on a recovery track. However, the possibility of a drop in jobs growth and low inflation persuaded RBA to react and cut rates.
Potential Economic Events to Impact
The European economy is due to release a series of economic events, which include:
French Flash Manufacturing PMI – The figure is due at 7:15 (GMT) with a forecast of 51.3 vs. 51.2 during the previous month.
French Flash Services PMI – Besides the French Manufacturing PMI, the services PMI will be observed. It’s expected to drop slightly to 54.9 vs. 55.3.
German Flash Manufacturing PMI – The data will be released after 15 minutes of French services and manufacturing PMI at 7:30 GMT. It’s forecast to rise from 52.3 to 52.2.
German Flash Services PMI – It’s scheduled with a forecast of 54.6, slightly below the previous month’s figure of 54.7.
CAD – GDP m/m – 12:30 GMT
Statistics Canada will be releasing the GDP figures for the Canadian economy at 12:30 GMT. The Gross Domestic Product GDP in Canada was worth 1709.30 billion US dollars in 2018. The GDP worth of Canada represents 2.76% of the world economy. GDP in Canada averaged 652.54 USD Billion from 1960 until 2018, reaching an all-time high of 1842.02 USD billion in 2013 and a record low of 40.77 USD billion in 1961.
Economists are expecting a drop in Canadian GDP figures from 0.2% to 0.1%. The Loonie may trade under pressure today.
USD – ISM Non-Manufacturing PMI – 14:00 GMT
The Institute for Supply Management is due to release services PMI figures at 14:00 GMT with a forecast of 50.4 vs. 49.1. Newbies, it’s a survey of about 400 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories.
The negative forecast may keep the US dollar in check while positive data may bring further buying in the buck.
That’s it for today, but do check FX Leaders economic calendar for the live coverage of these major events.