IronFX Daily Commentary by Charalambos Pissouros | 24/02/2017
February 24, 2017 10:13 am
Investors turn their attention to Canada • Canada’s CPI for January is due out. Headline rate is exp. to tick up, no forecast for the core rate. • Markit. Manuf. PMI for Jan. showed fastest increase in prices since 2014. As such, we expect both rates to rise. • Given the rapid increase in the yearly rate of change of oil prices, we believe that the headline is likely to increase by more than the core. • Accelerating CPIs could lessen the likelihood for the BoC to ease further. Could be CAD-positive.
Overnight: RBA Governor Lowe confirms the Bank is likely to stay on hold in the foreseeable future. • Easing would mean more borrowing, higher house prices. • Too much household borrowing today can create problems for tomorrow. • Would like AUD to be lower, but finds it hard to say that AUD is overvalued. • We still expect AUD to remain supported. Best proxy: EUR/AUD.
Rest of today’s events: • France and Sweden: Consumer confidence indices for February. Usually not major market movers. • US: New home sales for January are exp. to have rebounded. Could support USD somewhat. We remain skeptical on the performance of the housing sector, given that mortgage rates have spiked following Trump’s election. We also get U o M consumer sentiment index for February.
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Investors turn their attention to Canada
• Canada’s CPI for January is due out. Headline rate is exp. to tick up, no forecast for the core rate.
• Markit. Manuf. PMI for Jan. showed fastest increase in prices since 2014. As such, we expect both rates to rise.
• Given the rapid increase in the yearly rate of change of oil prices, we believe that the headline is likely to increase by more than the core.
• Accelerating CPIs could lessen the likelihood for the BoC to ease further. Could be CAD-positive.
Overnight: RBA Governor Lowe confirms the Bank is likely to stay on hold in the foreseeable future.
• Easing would mean more borrowing, higher house prices.
• Too much household borrowing today can create problems for tomorrow.
• Would like AUD to be lower, but finds it hard to say that AUD is overvalued.
• We still expect AUD to remain supported. Best proxy: EUR/AUD.
Rest of today’s events:
• France and Sweden: Consumer confidence indices for February. Usually not major market movers.
• US: New home sales for January are exp. to have rebounded. Could support USD somewhat. We remain skeptical on the performance of the housing sector, given that mortgage rates have spiked following Trump’s election. We also get U o M consumer sentiment index for February.
Join us for more technical and fundamental analysis: http://www.ironfx.com
To get the latest Forex trading news you should:
• Download the IronFX Research app: http://goo.gl/jhQIxO
• Like us on Facebook: https://www.facebook.com/IronFX
• Follow us on Instagram: https://www.instagram.com/ironfx
• Follow us on LinkedIn: https://goo.gl/wSEbPN
• Follow us on Twitter: https://twitter.com/IronFXGlobal
• Circle us on Google+: https://www.google.com/+Ironfxglobal
• Subscribe to our Channel: http://bit.ly/1foFmCU
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