Good morning everyone,
I’m Gina Constantin and I’m covering for Justin today. I am a global macro analyst and trader based in Romania with a background in economics and international affairs.
The economic calendar looks relatively light, though we might have unexpected developments. Wish you a wonderful day and a profitable trading session.
Today we have some data releases in the eurozone. The final Consumer Price Index (CPI) from Germany is eagerly anticipated. As one of the largest economies in the eurozone, Germany holds significant influence over euro currency pairs. The final CPI figures offer insight into inflationary pressures within the German economy, which can impact the monetary policy decisions of the European Central Bank (ECB), as well as investor sentiment towards the euro.
Investors will also look forward to the monthly Industrial Production report from Italy which will show the health and performance of Italy’s manufacturing sector, an important component of the country’s economy. Any surprises in the industrial production figures may result in some market volatility for euro currency pairs as traders assess the potential implications for Italy’s economic growth.
Deutsche Bundesbank President Nagel is scheduled to speak at an award ceremony hosted by the German embassy in Paris. As a reminder, Nagel has also been a voting member of the ECB Governing Council since January 2022. He is widely regarded as one of the most influential members of the council. While speeches like these typically do not create market volatility, it’s still important to monitor Nagel’s remarks. Traders should pay particular attention to any comments he might make regarding inflation or subtle clues about future monetary policy decisions.
Later in the day we’ll get labor market data for Canada. The consensus for the Canadian Employment Change is a rise from 0.1K to 15.0K while the Unemployment rate is anticipated to increase from 5.8% to 5.9%. The BoC recently noted that the labor market conditions in Canada are softening, but rising wages, currently by around 4-5%, continue to put pressure on inflation. If this trend continues and productivity growth doesn’t improve, it could be a while until the Bank starts considering rate cuts