Daily Brief, Nov 8: Economic Events Outlook – Canadian Labor Report in Play
Arslan Butt • 2 min read
Happy Friday, traders.
On Thursday, the US session drove such a massive drop in safe-haven assets like gold and silver, while a bullish trend was seen in the US dollar and stock markets amid risk-on sentiment.
The dollar continues to trade bullish versus the Japanese yen and the Swiss franc on Friday. The China-US trade deal to reverse tariffs on each other’s goods underpinned the riskier assets, even as some reports propose a preliminary trade agreement is far from a done deal.
As per officials of both nations, China and the United States have agreed to reverse tariffs on each other’s products in a “phase one” trade agreement if it is concluded. Nevertheless, there is yet some uncertainty about a trade agreement as officials inside and outside the White House have balked at the idea of giving up tariffs.
The GBP traded near a two-week low after two of the Bank of England’s MPC members surprisingly voted to cut interest rates due to risks posed by Britain’s fraught departure from the European Union.
EUR – German Trade Balance – 7:00 GMT
Destatis is due to report a difference in value between imported and exported goods during the previous month. Germany’s trade balance has been stable lately, and with dovish ECB rate decision and accommodative policy, German’s trade balance is expected to rise further to 19.3B vs. 18.1B today.
EUR – French Industrial Production m/m – 7:45 GMT
The INSEE is due to report a change in the total inflation-adjusted value of output produced by manufacturers, mines, and utilities. Previously, France has suffered from negative industrial production figures, but finally, economists are expecting some improvement in industrial production.
CAD – Labor Market Report – 13:30 GMT
Employment Change – It’s always exciting to trade events like Canadian employment change as they are highly unpredictable, and the market often exhibits massive fluctuations on their release, especially if the data reports a sudden rise or drop in the employment change. Employment change is due to release at 13:30 GMT. Last month’s figure was 53.7; let’s see what the Canadian labor market has to share this month.
Unemployment Rate – Canadian labor market figures seem to get worse over a dramatic drop in crude oil prices. Economists are expecting a rise in the unemployment rate from 5.5% to 5.6% for the month of November 2019.
That’s it for now, stay tuned to FX Leaders for quick trade plans and forex trading signals.