The Bank of Canada today held its target for the overnight rate at 4½%, with the Bank Rate at 4¾% and the deposit rate at 4½%. The Bank is also continuing its policy of quantitative tightening.
An interesting week starts with investors focusing on the CPI report, retail sales and industrial production data.
Main events this week include the Bank of Canada interest rate decision, German GfK and Ifo surveys, European S&P Global PMI’s, US PCE Price Index and US Durable Goods Orders
Euro started the week almost unchanged at 1.0831, but there are some events that will affect the price of the common currency. On the macroeconomic data, I expect to see some improvement in German CPI and the Zew surveys.
GBPUSD trades higher on better-than-expected economic data released earlier today. The UK economy expanded by 0.1% in November 2022 well above the forecasts for a 0.2% contraction.
EURUSD slumps in early European trading as traders return to their offices after the New Year festivities. EURUSD is down 1.11% at 1.0546 hitting the lowest level since December 13
A low volatility week is expected for the last trading week of the year. Monday 26 the stock and bond markets are closed.
EURUSD retreated today as it faces strong resistance at the 200-day moving average. Earlier today reported that final inflation figures in the euro area CPI rise 10.6% below the expectations of 10.7%
October PPI is expected at 8.4 on yearly basis from 8.5 in September. The core PPI is forecasted at 7.2 same as the previous month.
The week includes some events that will drive equities and bond markets around the globe. News on Friday that China might cancel some of the covid restrictions boosted the investor’s sentiment and supported the equities markets
