Today there are 2 very important economic events, which can move the Canadian Dollar and the US Dollar. Other than that there are no other major economic announcements. These are the major economic events to focus today in the forex market:
Canada Consumer Price Index (July)
Time: 12:30 GMT
The monthly economic reading measures the rate of inflation, with higher readings indicating less purchasing power for the consumers, and a high probability for the Bank of Canada to raise interest rates in the future, if these increased readings of inflation are sustainable over time, showing increased inflationary pressures. Higher than expected readings are supportive and positive for the Canadian Dollar in this respect. The expectation is for a reading of 1.2% on a yearly basis for the month of July, higher than the previous reading of 1.0%, and for a change of 0.0% on a monthly basis, compared to the previous reading of -0.1%.
US University of Michigan Confidence Survey (August)
Time: 14:00 GMT
A high or rising value of University of Michigan Confidence Survey reflects higher consumer confidence and consumer spending, which often leads to higher economic growth and higher level of GDP. The expectation is for a reading of 94.0, higher than the previous reading of 93.4, and any positive or negative surprise can move the US Dollar either to its appreciation or depreciation against other major currencies.
