Among the first will be published the Index of the business climate IFO Germany with a preliminary forecast of 112.9. The index will show the degree of confidence of producers, construction companies, wholesale and retail trade enterprises in the future of the country and the EU as a whole, since Germany is the largest economy of the euro area. If the publication exceeds expectations, then the confidence of entrepreneurs has increased, which will contribute to the growth of the euro. The disappointing indicator will become an indicator of the decline in confidence, against which the euro’s rate will fall.
In the UK there will be a Hearing Report on inflation, which is of particular interest to traders, as they are able to give markets an idea of the economic climate in the UK after Brexit.
The Bank of England will take into account the results of this report in the process of forming monetary policy at the next meeting. Consequently, any signs of economic growth and inflation in the UK will have a positive impact on the pound sterling, since the price will no longer take into account the probability of economic easing. Nevertheless, if the inflation indicators fall below expectations, the rate of the British currency will fall, as the markets will prepare for a policy of stimulation from the Bank of England.
Finally, in Canada, the volume of wholesale sales (m / m) will be published, which will demonstrate a monthly change in the total value of goods sold in bulk. The indicator is considered a leading indicator of consumer spending, as wholesale trade enterprises need to meet consumer demand. If the report exceeds expectations, the Canadian dollar rate will rise, as the market price will be increased demand. A disappointing report will lead to a fall in the currency, as the price will take into account the fall in demand.