Beige Book and Crude Oil Inventories in the US, MPC Meeting Minutes in GB and BOC Monetary Policy Report in Canada are some of the highlights of the current outlook. Let’s see what awaits us today.
In Canada, BOC Monetary Policy Report & Press Conference, The BOC Governor usually holds a press conference to discuss the contents of this report. It’s among the primary method that provides valuable insight into the bank’s view of economic conditions and inflation – the key factors that will shape the future of monetary policy and influence their interest rate decisions.
In the US, Crude Oil Inventories, the crude oil barrels held by commercial firms in inventory remains -0.4M as on the pervious week. it most affects the loonie due to Canada’s sizable energy sector, and It influences the price of petroleum products which affects inflation.
Later in the US, Beige Book, This analysis (with the Green & Blue non-public books) is used by the FOMC to help make their next decision on interest rates. Anecdotal evidence supplied by the 12 Federal Reserve banks regarding local economic conditions in their district.
In Canada, Wholesale Sales that measures the total value is about to rise by 6%. A leading indicator of consumer spending, expect consumer sales to increase.
For more on USD/CAD, read the Canadian dollar forecast.
In Europe, German Producer Price Index (PPI) that measures the price of goods sold by manufacturers is about to rise by 2% from the previous month. A leading consumer inflation indicator, when manufacturers charge more for goods the higher costs are usually passed on to the consumer.
In Great Britain, Monetary Policy Committee (MPC) Meeting Minutes, The breakdown of the MPC members’ interest rate votes tends to be the most important part of the minutes. The vote report is 1-0-8: (1 = voted to increase rates, 0 = voted for rate reduction and 8 = voted to hold rates). It’s a detailed record of the Bank of England (BOE), MPC’s most recent meeting, and providing in-depth insights into the economic conditions that influenced their vote on where to set interest rates, and offering clues on the outcome of future votes.
More in Great Britain, Public Sector Net Borrowing that measures the difference in value between spending and income for public corporations, the central government, and local governments during the previous month; is about to drop down by 1.1B and still indicates a budget deficit.
Finally in Britain, Spending Review, the document will set out the Government’s four-year spending plans and allocate resources across all departments, according to the Government’s priorities. Domestic government spending and borrowing levels can have a significant impact on the economy and affects the country’s credit rating.
Read more about the Pound in the GBP/USD forecast.
That’s it for today. Happy forex trading!