Here are some upcoming events in the market this week that could present some potential trading opportunities for you:
The British Pound has been on a strong run over the last year as higher interest rates have made it a more attractive currency for investors. With inflation remaining stubbornly high at 8.7%, will the wage growth data released on Tuesday at 09:00 continue to show that earnings are keeping up with prices, adding further pressure on the Bank of England to hike rates going forward?
In contrast, the US dollar has continued to weaken, as inflation in the USA continues to fall and the jobs market continues to soften. On Wednesday at 15:30, we get the latest inflation data, which analysts expect to show a further decline to 3.1%.
The Bank of Canada surprised the markets with an interest rate hike to 4.75% last month, and the consensus is that they will continue with another 25 bps increase this month when they announce at 16:00 on Wednesday.
The Chinese economy and Australian Dollar have a high correlation due to the huge demand for natural resources, so keep an eye on the Import and Export data from China on Thursday at 06:00. Imports have declined in 6 out of the last 7 months, indicating a softening of the Chinese economy, which could have a negative impact on the Aussie Dollar.
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