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Economic Calendar: An important day for USDCAD

Summary:

  • A pack of CPI data from Eurozone to be release in the morning

  • Important figures from the US labour market

  • Afternoon’s Ivey PMI print may increase volatility on CAD

A long-awaited day for many traders as NFP report is going to be released. In combination with the crucial readings from the Canada USDCAD may be one of the most volatile FX pairs today. Throughout the morning preliminary CPI releases from the Eurozone economies are going to be released. In the late afternoon speeches of the US and England’s central bankers may draw attention of some investors.

10:00 am BST - Eurozone, CPI for December. This is the most important data for European Central Bank in terms of future monetary policy direction. Last print showed that the Eurozone inflation rate is close to 1.5%. However, market consensus suggests that it may fall back to the level of 1.4% therefore reaching the target of 2% still seems to be a distant future. One should keep in mind that this is just a preliminary release and that the actual print will be published on January 17, 2018.

1:30 pm BST - US, Nonfarm Payrolls and Unemployment Rate for December. The most important figures from the US labour market for traders, especially the first one. It is also closely watched by the Federal Reserve as full employment is one of its mandates. Last month’s print surprised to the upside coming out at 228k against 200k expected. This time surveyed economists point for the change of 190k. Apart from that, unemployment rate will be released simultaneously with forecasts calling for 4.1% print, the same as last month’s.

1:30 pm BST - Canada, Employment Change for December. A top-tier data from Canada as employment change is an crucial indicator of the consumer spending. A reading for November resulted in a significant surprise as it came out at 79.5k against 10k expected. This time market consensus calls for an increase of just 1k.

3:00 pm BST - US, ISM Non-Manufacturing for December. This one is a crucial reading for the USD as it shows the condition of non-manufacturing sector of economy on which US is highly dependant. Keep in mind that this sector has been doing pretty well for some time as we have not seen a reading below 50 pts(that would mean the sector is shrinking) since January 2010. Last month’s print missed forecasts coming out at 57.4 against 59 pts expected. This time surveyed economists point out for a reading of 57.6 pts.

3:00 pm BST - Canada, Ivey PMI for December. Ivey PMI index shows how well is Canada’s manufacturing sector doing. For some time we have seen readings above 50 pts, indicating the sector is expanding, with the latest one below being from June 2016. The last month’s print showed a strong 63 pts against 62.7 expected. This time market consensus calls for a reading of 62.2 pts.link do file download link

USDCAD is approaching a 23.6% retracement level of the last downward impulse after failing to surpass the barrier of 1.29 several times. Source: xStation5

 

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