Market Brief December 6th: BoC Interest Rate Decision

06 December, 2017 - 07:42AM

Australia

AUD 00:30 a.m. GMT, GDP (QoQ) (Q3) –we’re expecting Gross Domestic Product for Australia for the third quarter. This is a major catalyst and we could see price move significantly as a result of the news coming out depending on their nature.

Projections are for a slight decrease at 0.7% compared to 0.8% for the previous period. If the actual result is higher than expected, this should be seen as a bullish sign for the Aussie and vise versa- a lower than expected result should be read as a bearsih factor for the valuation of the currency.

United States

USD, 13:15 p.m. GMT, ADP Nonfarm Employment Change (Nov)- the report measures the monthly change in non-farm private employment. It is also oftentimes a predictor of the Non-farm payrolls number on Friday. For the month of November, expectations are for a decrease at 185K versus 235K for the previous month- an expected decrease of 50, 000 jobs. If the actual news event comes out better than expected, this could boost the dollar, while a worse off result could drive it down.

Canada

CAD, 15:00 p.m., Bank of Canada, Interest Rate Decision – the Canadian dollar will be impacted by the interest rate decision coming out. Traders need to be aware that levels of volatility will pick up causing movements in both directions. Market analysts expect no change in the rate and for it to remain at 1.00%. If there is a cut to the rate, this could send the Cad flying lower in price. Conversely, if the rate is increased this could cause the currency to appreciate.

Oil

USD 15:30 p.m. GMT, Crude Oil Inventories- projections are for -3.507M barrels for this week compared to -3.429 M barrels of change in inventories for the previous week. If supplies have been cut, this could push prices up. And, on the contrary, if the levels of output have increased this could bring down the price of the commodity.

 

Wishing you Happy and Successful Trading!

 

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