Economic calendar: 4 things to watch in the forex market next week
The US dollar rose by more than 1 per cent this week as traders reflected on the strong economic data from the US. These gains helped offset some of the significant losses the currency has had in the past few months. Still, the currency remains down by more than 6% in the past six months. In this report, let us look at the key events in the economic calendar that will move currencies this week.
Bank of Canada rate decision
The Canadian dollar has gained recently because of the impressive economic data from Canada. The falling number of coronavirus infections and rising crude oil prices have also helped the Canadian currency. In the coming week, the Bank of Canada (BOC) will start its monetary policy meeting on Tuesday and deliver its decision on Wednesday. Analysts polled by Reuters expect the bank will leave rates unchanged at 0.25% and possibly hint that rates will remain at this level for a while. The Canadian dollar is trading at 1.3060 against the US dollar.
European Central Bank (ECB) decision
The euro has dropped slightly against the US dollar because of the strong data from the US and the relatively mild numbers from Europe. In the coming week, the biggest event will be the ECB decision that will come out on Thursday. Like other central banks like the Fed, analysts expect that the central bank will leave rates unchanged. Furthermore, the European economy has made some recovery recently. Other key numbers that will move the euro are the Eurozone GDP and employment data. The euro is trading at 1.1835 against the US dollar.
Japan GDP data
The Japanese yen has fallen slightly against the US dollar in September. That is mostly because of the overall stronger greenback and the recent news on Shinzo Abe resignation. In the coming week, the yen will react to the leading index data and second-quarter GDP data that will come out on Monday. On Wednesday, it will react to the machine tools order data. In addition, the currency will move depending on the ongoing political issues in Japan on Abe’s replacements. The Japanese yen is trading at 106.20 against the US dollar.
UK GDP data
The British pound has dropped slightly against the US dollar this month. This decline is mostly because of the rising risks of a no-deal Brexit and a stronger dollar. This week, the currency will react to house price data that will be released by the Royal Institute of Chartered Surveyors (RICs). Analysts expect the data will show that the prices increased in July as the country continued to recover. On Friday, the currency will react to the UK GDP data. Analysts expect that the economy contracted by more than 21% in the second quarter. The British pound is trading at 1.3280 against the dollar.
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