Today, Monday, is shaping up to be a day full of anticipation for key inflation data from Canada and New Zealand. At 12:30 (Warsaw time), three reports on the Canadian CPI will be released: Median CPI y/y, Trimmed CPI y/y, and CPI m/m. Forecasts indicate stability in the annual inflation rates at 2.1% and 2.0% respectively for the Median and Trimmed CPI, while a decline in the monthly CPI is expected, dropping by 0.2%. In the evening, at 22:45 (Warsaw time), attention will turn to the New Zealand CPI q/q, where forecasts suggest an increase to 1.5% from the previous level of 0.9%.
The current week has started after a rather turbulent period for the financial markets. Last week, key publications from the USA caused some surprises, which affected investor sentiment, leading them to approach upcoming reports with greater caution. In this context, today’s data from Canada and New Zealand may provide significant insights into the monetary policy directions of these countries, especially in light of the upcoming interest rate decisions.
Traders should closely monitor the releases at 12:30 (Warsaw time) and 22:45 (Warsaw time), as they may introduce significant volatility in the currency markets, particularly in pairs involving CAD and NZD. It is important to consider how this data may impact inflation expectations and central bank decisions. Today's results may also influence the overall market sentiment, which has recently shown a tendency towards caution, as confirmed by the declining Fear & Greed index.
