Summary:
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Canadian inflation seems to be on top of the Friday’s agenda
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Preliminary reading of University of Michigan index for August
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Baker Hughes weekly update on US oil rigs count
Friday should be dominated by the inflation release from the Canadian economy. Canadian dollar traders may also eagerly look at the evening’s Baker Hughes report concerning the number of oil rigs in the US. Before noon we will be offered solely the final print of EMU inflation for July - no impact on the shared currency is expected.
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Open real account TRY DEMO Download mobile app Download mobile app1:30 pm BST - Canadian inflation: The Canadian dollar has approached quite a crucial technical level from the daily’s chart perspective (look at the chart at the bottom of this article). Therefore, today’s session could be critical and may set moods for the nearest future for the Loonie. As far as NAFTA talks are concerned one needs to remind that currently talks are being held basically between the US and Mexico as Canada has been set aside as it has not taken part in any negotiations since Mexico’s presidential election in July. It’s worth adding that the Bank of Canada is expected to more rates again in October. The consensus for today’s inflation points to 2.5% for headline.
3:00 pm BST - Consumer sentiment by UoM: US consumer sentiment keeps hovering close to its historical levels being boosted by tax cuts last year as well as constantly successful performance of the stock market which, by a wealth effect, positively affects consumers’ spending. The preliminary reading for August is expected to show 98, marginally up from 97.9 seen in July. As usual, focus will be on inflation expectations (survey-based) measures as well.
6:00 pm BST - Oil rigs count: The last week brought a meaningful increase in US oil rigs which climbed to 869 from 859. Given that oil prices are currently trading nearby their crucial technical levels one may expect that this data could affect investors’ intentions to some extent.
The USDCAD has run into its medium-term bearish trend line which could play a major role in the upcoming hours. Source: xStation5
