- oil recovers, but not enough to stop drop Loonie
- China nervousness remains, but the reaction to the Fed three weeks
- Canada data synchronously with US
the DAC had a tough week as the Chinese stock market rout grabbed headlines and caused panic around the world. Canada was attacked by two fronts. Decline in demand for raw materials was expected after China was not able to contain a strong sales outside their local stock market. Flows refuge removed from the USD and in the more stable asset classes. US data highlighted a strong economy that enjoyed the US currency.
Elections Canada focuses on the recession
The long journey in elections open to Canada with a big highlight. Canada is in a recession? The technical answer is no, or rather not. A technical recession is when the gross domestic product was negative growth for two consecutive quarters. Canada reports the data of monthly GDP that make the simplest speculation. With only a month to be reported, there is a strong likelihood Canada will be in recession. This is the argument of both political parties in the hope of wresting control of the nation preservatives. The monthly GDP figures posted in June and July were both negative (-0.1% and -0.2%) There is still a small chance that the shares of the Bank of Canada have been enough to avoid a recession .
BOC proactive enough to avoid recession?
The Bank of Canada led by Governor Stephen Poloz has been proactive in trying to avoid a recession by reducing interest twice in 2015. Although not possessing the qualities rock start his predecessor, he was also left to face a Canadian economy in trouble when one of its biggest export, oil, is experiencing oversupply as producers pump crude to record levels.
Next week the Canadian economy displayed several arguments in favor of a recovery or a recession. As opposed to this week where there was little Canadian data on deck, the week of August 31 to September 4 provides the main indicators in the open air. Note for marketers is the data indicators that share a statement with his US counterpart, such as employment and trade balance figures.
Canadian events to watch this week:
Tuesday, September 1
8:30 CAD GDP m / m
10:00 USD ISM Manufacturing PMI
9:30 p.m. AUD GDP q / q
Wednesday, September 2
8:15 USD ADP non farm employment Change
Thursday, September 3
8:30 CAD trade balance
8:30 USD trade balance
8:30 USD unemployment claims
10:00 USD ISM non-manufacturing
Friday, September 4
8:10 USD FOMC member Lacker Speaks
8:30 CAD employment Change
8:30 USD non-farm employment Change
10:00 CAD Ivey PMI
* All hours EDT
for a complete list of events planned in the forex market visit [MarketPulse Economic Calendar] (http://www.marketpulse.com/economic-events/)
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