Today both the CPI and Core CPI from USD have surpassed the expectations and previous, alone with Thursday’s PPI data, now the market once again regained the confidence for FED hike by reflecting in large buying into USD today.
All USD pairs have showed strength in USD.
Meanwhile, CAD had a worse than expected manufacturing sales m/m data plus the downtrend of WTI once again closing at near $43 per barrel.
Cad had lost strength against other commodity currencies and USD, however, the worse currencies would have to be EUR, CHF and GBP.
EUR CHF & JPY all lost strength as safe heaven currency however, the risk sentiment was off today plus the CPI and Core CPI data should have signalled a strong USD and weak stock markets; which was what happened but the 3 safe heaven currencies did not follow through.
We’re in sort of interesting transition now that many currencies do not react to its characteristics and many traders are clueless as to what’s going to happen in the future.
AUD & NZD actually gained strength regardless of the risk off sentiment as well.
GBP has been sold off today due to report from BOE and basically the underlying fundamental weakness, nothing really major happened in GBP except that traders are now trading with the fundamental future of it.
Next week we have Monetary policy minutes from AUD which will provide some volatility but nothing major should impact AUD because the next meeting for rate decision is still far away.
We also have GDT price from NZD which will always be a short-term volatility but not a major and sustained mover.
BOC govern will speak which might signal the possibility of further rate cut in CAD as the economy and oil price are not picking up.
We also have monetary policy statement from JPY which might be a big impact at least for short-term as JPY always reacts heavily to the political and central bank comments and rumours.
BOJ press conference comes after that, so another big event to follow.
Then we have our usual Crude oil inventory followed by the most anticipated FED fund rates and press conference. This will be a really large impact for the market.
We also have NZD official cash rate next week which will be another impact for the market.
Then ECB president will speak on Thursday which might or might not give us any insight for the future of EURO.
Another unemployment data from USD on Thursday as well, but we will have to see the FOMC impact first to decide how important this event is.
Finally we will end Friday with CPI and Core CPI from Canada which again will be impact for CAD especially BOC still wants to cut rate to boost inflation.
Today both the CPI and Core CPI from USD have surpassed the expectations and previous, alone with Thursday’s PPI data, now the market once again regained the confidence for FED hike by reflecting in large buying into USD today.
All USD pairs have showed strength in USD.
Meanwhile, CAD had a worse than expected manufacturing sales m/m data plus the downtrend of WTI once again closing at near $43 per barrel.
Cad had lost strength against other commodity currencies and USD, however, the worse currencies would have to be EUR, CHF and GBP.
EUR CHF & JPY all lost strength as safe heaven currency however, the risk sentiment was off today plus the CPI and Core CPI data should have signalled a strong USD and weak stock markets; which was what happened but the 3 safe heaven currencies did not follow through.
We’re in sort of interesting transition now that many currencies do not react to its characteristics and many traders are clueless as to what’s going to happen in the future.
AUD & NZD actually gained strength regardless of the risk off sentiment as well.
GBP has been sold off today due to report from BOE and basically the underlying fundamental weakness, nothing really major happened in GBP except that traders are now trading with the fundamental future of it.
Next week we have Monetary policy minutes from AUD which will provide some volatility but nothing major should impact AUD because the next meeting for rate decision is still far away.
We also have GDT price from NZD which will always be a short-term volatility but not a major and sustained mover.
BOC govern will speak which might signal the possibility of further rate cut in CAD as the economy and oil price are not picking up.
We also have monetary policy statement from JPY which might be a big impact at least for short-term as JPY always reacts heavily to the political and central bank comments and rumours.
BOJ press conference comes after that, so another big event to follow.
Then we have our usual Crude oil inventory followed by the most anticipated FED fund rates and press conference. This will be a really large impact for the market.
We also have NZD official cash rate next week which will be another impact for the market.
Then ECB president will speak on Thursday which might or might not give us any insight for the future of EURO.
Another unemployment data from USD on Thursday as well, but we will have to see the FOMC impact first to decide how important this event is.
Finally we will end Friday with CPI and Core CPI from Canada which again will be impact for CAD especially BOC still wants to cut rate to boost inflation.