IronFX Daily Commentary by Charalambos Pissouros | 25/05/2016
May 25, 2016 8:56 am
Bank of Canada may strike a dovish tone • BoC is widely expected to remain on hold following the fiscal boost in Mar. • However, the recent fires in Alberta have decreased oil output by roughly 25%. • This could raise concerns about Q2 GDP, as the situation is not resolved yet. • CB’s usually do not cut rates due to “temporary” shocks like this, but we still expect a dovish shift in language. • On top of the lost oil production, a dovish bias could put CAD under renewed selling pressure.
Today: • Germany: Ifo survey for May is exp. to show a rise in the expectations index. We believe it could rise by less than exp. If so, it could hurt EUR a bit. • Speakers: ECB Vice President Vitor Constancio, Philadelphia Fed President Patrick Harker and Minneapolis Fed President Neel Kashkari.
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Bank of Canada may strike a dovish tone
• BoC is widely expected to remain on hold following the fiscal boost in Mar.
• However, the recent fires in Alberta have decreased oil output by roughly 25%.
• This could raise concerns about Q2 GDP, as the situation is not resolved yet.
• CB’s usually do not cut rates due to “temporary” shocks like this, but we still expect a dovish shift in language.
• On top of the lost oil production, a dovish bias could put CAD under renewed selling pressure.
Today:
• Germany: Ifo survey for May is exp. to show a rise in the expectations index. We believe it could rise by less than exp. If so, it could hurt EUR a bit.
• Speakers: ECB Vice President Vitor Constancio, Philadelphia Fed President Patrick Harker and Minneapolis Fed President Neel Kashkari.
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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