- Unemployment data from the Eurozone is the sole reading worth looking at from the old continent
- Canadian housing starts could influence the great performance of the CAD
- API to reveal its weekly report on a change in oil stocks
The amount of scheduled macroeconomic readings for today is not impressive to say the least. The unemployment rate from the EMU economy is the sole more important print before noon, however it does not mean that volatility on the single currency will be tepid. During the second half of the day we will get the housing data from Canada as well as a weekly publication on oil inventories by API.
10:00 am BST - Unemployment rate from the EMU: The euro has had a successful period of time of late as it’s gained ground against the greenback. Nonetheless it experienced a turnaround on Monday when the US dollar was definitely better currency. The question is how long a pullback on the EURUSD could last? Help could come from macroeconomic readings and the first chance is just today. Even as the unemployment rate data is not a big market mover it could illustrate that the labour market is getting tighter boding well for the inflation backdrop. The market consensus forecasts a decrease in November from 8.8% to 8.7%.
1:15 pm BST - Canadian housing starts: There is no doubt that the housing data does rare exert more reaction on the Loonie but the Canadian currency seems to be more vulnerable to any macroeconomic readings before the BoC meeting next week. Do notice that odds for a rate hike as soon as next week jumped substantially following the splendid jobs report published on Friday. That said, the CAD could be more volatile in the days ahead and therefore today’s data might see the CAD wobbling a bit more than usually.
9:40 pm BST - API’s report on US oil stockpiles: Oil prices have performed perfectly recently and once the upcoming data keeps showing the global oil glut continues shrinking it could morph into yet higher levels seen in crude. On the other hand a seasonal pattern suggests that we should already be at the bottom of crude oil stocks hence one may look for a rebound of stocks over the course of the oncoming months. Thus, if oil stocks keep on declining in defiance of seasonality it could be a strong incentive to take the commodity price yet higher. Finally do remember that the API’s report is also treated as a prognosis ahead of the governmental report due tomorrow. Notice that the CAD could response to the data as well.
Central bank speakers scheduled for today:
- 3:00 pm BST - FED’s Kashkari
The USDCAD appears to be at the key place being traded just under a local resistance. Should buyers take control on the market anew, it could result in a pullback even toward 1.2630, however once they fail to do so, it might lead to further declines. Source: xStation5
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