Despite the lack of fundamentals during the Asian and the European sessions today, volatility seems to be picking up at the European session opening bell.
The US Dollar is broadly lower across the board, leading safe haven assets higher, including Gold, Silver, Japanese Yen, and the Swiss Franc.
Yet, there is a lot more to come today ahead of the weekend.
Canada’s Inflation Under Spotlight Today
Today’s inflation data will likely have a notable impact on the markets. Whatever the outcomes are, it will increase or decrease the estimates for further measures by the Bank of Canada.
A few months ago, the Bank of Canada surprised the market with a sudden rate hike, due to recent growth pick up.
Today’s data would give the market an idea whether the Bank of Canada was right about its decision. Moreover, investors are likely to take a medium-term action depending on today’s outcomes.
As always, investors will start pricing in action by the Bank of Canada in advance, whether if the Bank will raise the interest rate or cut it once again. Therefore, as a trader, don’t be surprized to see the CAD as the best-performing currency today and in the coming days.
Inflation Remains Lower
Despite the fact that the inflation has been slowing down recently, it seems that the Bank of Canada is anticipating a notable rise in inflation soon.
Read more: https://www.orbex.com/blog/2017/08/canadas-inflation-data-ahead-3