- Canadian housing data could impact the CAD given its vulnerability
- FED’s speakers are on the agenda before chair Yellen
- Oil in a critical support ahead of API’s report
A count of macroeconomic releases scheduled for today isn’t impressive, nonetheless we have a few noteworthy events. Let us remind that Wednesday is bound to be the most interesting day given a bunch of economic data with the chair Janet Yellen’s testimony to the Congress. Her remarks will be especially worth looking at, however two FED’s members are going to take their floor later in the day as well.
1:15 pm BST - Canadian housing starts: The Bank of Canada is expected to deliver an interest rate hike as soon as tomorrow. Market’s expectations point to almost 100% likelihood of a move in July, hence any other scenario could exert tremendous selling pressure on the CAD. Although, housing data basically does not provide greater volatility, the CAD remains outstandingly vulnerable to any poorer readings from the economy which could potentially affect the BoC’s decision. A consensus suggests 201.5k compared with the prior print 194.7k. Either way, the data is quite volatile, hence in order to draw any conclusions it’s worth taking a look at averages.
FED’s speakers (Brainard at 5:30 pm BST and Kashkari at 6:20 pm BST): Both appearances are on monetary policy, hence their impact on the US dollar could be perceptible. Moreover, these speeches could steer market’s anticipations with regard to the tomorrow’s testimony of chair Yellen to the Congress.
9:40 am BST - crude oil stocks by API: There is no doubt that an oil market has drawn most of attention (along with grains) when it comes to a commodity bloc. We pointed out yesterday that oil prices could be already at around decent levels which might be interesting for buyers. If so, today’s API data has to unveil bullish figures and bring another massive draw-down, otherwise oil prices could break out their local support.
The EURCAD could be prone to an upside move if the Canadian housing data substantially falls short of a forecast. Source: xStation5