Daily Brief, Feb 28: Economic Events Outlook – Eyes on GDP, CPI & PMI Figures
Arslan Butt • 2 min read
Good morning, traders.
On Friday, the dollar tumbled as forex traders trust the Federal Reserve would lower the Fed fund rates to balance the influence of the extended coronavirus, providing the Euro its most significant daily gain since May 2018.
With US Fed fund rates higher than those of G10 rivals, the scope for them to drop against the US dollar remains much broader, as traders are turning away from the greenback.
On the fundamentals’ front, we have a series of low and medium impact economic events from the Eurozone and the US, which are likely to impact the market today. Let’s take a look.
Watchlist – Key Economic Events Today
Destatis is due to report a change in the price of goods and services purchased by consumers. German CPI is considered one of the high impact economic events for the Euro currency as Germany is regarded as the most significant business hub.
In January, the German CPI slipped by -0.6%, falling short of economists forecast of 0.5%. Today, economists are expecting a surge of 0.3%. It may add bullish pressure on the Euro today.
Statistics Canada will be releasing the GDP figures for the Canadian economy at 13:30 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.
Today, economists are expecting no change in Canadian GDP figures from 0.1% to 0.1%. The Loonie may trade under pressure today due to a drop in the prices of crude oil, which may are likely to add downward pressure on the Canadian GDP.
USD – Prelim UoM Consumer Sentiment – 15:00 GMT
At 15:00 GMT, the University of Michigan’s final consumer sentiment will remain in focus. It’s a survey of about 500 consumers, which asks respondents to rate the relative level of current and future economic conditions.
As per economists’ forecast, the data is expected to drop slightly from 100.9 to 100.7, which means the consumers feel less confident about the US economy, and it may drag the US dollar lower today.
Good luck, traders, and stay tuned to FX Leaders’ Economic Calendar for live market updates.