Daily Market Overview - April 20, 2026

This Monday promises to be interesting for traders due to the upcoming data from Canada. At 14:30 (Warsaw time), key inflation indicators will be released, such as m/m CPI, y/y Trimmed CPI, and y/y Median CPI. Forecasts indicate a rise in m/m CPI to 1.1%, which is a significant jump compared to the previous month. y/y Trimmed CPI and y/y Median CPI also remain at stable levels, with a slightly higher forecast for y/y Median CPI at 2.4%. These results have the potential to introduce considerable volatility in the forex market, especially concerning currency pairs with CAD.

In the context of last week's analyses, we know that the market was influenced by mixed macroeconomic data, which increased tension among investors. The last few days have been characterized by a lack of significant high-impact data, which could suggest a calmer atmosphere in the markets. However, today's publications from Canada may change this trend, especially considering the rising inflation expectations and their potential impact on monetary policy.

Traders should pay particular attention to the results published at 14:30 (Warsaw time), which may trigger sharp market movements. If the data turns out to be better than forecasts, we can expect a strengthening of the Canadian dollar, while weaker results may weaken the CAD. Today's session could be crucial for understanding the current state of the Canadian economy, making it an important starting point for the rest of the week.

Optimism currently dominates the financial markets, as evidenced by the rise of the Fear & Greed Index to a level of 68, indicating greed. Market sentiment has significantly improved, which may influence an increased risk appetite among investors. We also know that expectations regarding FED interest rates are stable, with a high probability of maintaining current levels at the upcoming FOMC meeting. This may suggest that investors are more willing to take risks, which could impact the stock and bond markets in the coming days.