Last week, trading was fairly dynamic, the dollar recovered and traded in the green zone after the bulls overcame the resistance. On the first day of the new week there will be 3 key data releases in the US, the EU and Canada.
In Canada, there are data of the trade sector, which tends to have a tremendous impact on the value of the national currency: the more the country’s exports, the higher the demand for the currency needed to pay for goods. Conversely, the more a country imports goods, the greater the supply of the national currency, it is necessary to pay for imports. Index of current accounts will reflect the change in the value of imports and exports, therefore, if it comes out higher than expected, the Canadian dollar will grow due to increased demand for the currency. If the report falls below expectations, the Canadian dollar will fall due to the increased supply of currency. Continue reading →
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. Continue reading →