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Forex Today: Canadian Inflation Expected to Increase by 0.2% Monthly

By Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

Markets are focused on today’s release of Canadian inflation data, which is expected to show annualized inflation unchanged.

   

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  1. Yesterday saw Crude Oil rise to new long-term highs, with WTI reaching a new 10-month high price, as markets showed fresh signs of tightness driven by OPEC supply cuts. This will attract trend traders to be involved on the long side.
  2. There will be a release of Canadian CPI (inflation) data later today, which is expected to show annualized inflation data unchanged, with a month-on-month increase of 0.2%, much lower than last month’s increase of 0.6%.
  3. The Reserve Bank of Australia released the minutes of its most recent monetary policy meeting, which showed as expected that the participants feel more monetary tightening may be required if inflation proves to be persistent but was not yet needed.
  4. The Forex market is seeing a slightly stronger US Dollar. Since the Tokyo open, the Japanese Yen has been the weakest major currency, while the New Zealand Dollar has been the strongest, although the moves are so small as to be effectively meaningless. However, the US Dollar remains within a valid long-term bullish trend, keeping the USD/JPY currency pair in focus on the long side for trend traders.
  5. Sugar futures rose yesterday to reach an area very near a new multi-year high price.
Adam Lemon
About Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

 

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