Forex news from Europe and Canada

We have two very important pieces of news ahead of us today. The first piece is coming from Europe and that is German Consumer Price Index data (CPI). Europe has been showing very poor results economic results lately and this inflation number might cause strong decline in Euro pairs. If the news is worse than expected Euro weakness will definitely spill to Swiss Franc pairs too. I am looking for possibilities to short eur/gbp if the market starts moving the pair down. The release is scheduled at 12:00 GMT. 

The second piece of news comes from Canada and that is Canada Gross Domestic Product. Expectations are weaker than last month, but as veteran traders say: ‘buy the rumor and sell the fact’. We might reverse the saying. The number might be much better than expected. Then, CAD would rise. I am currently looking at aud/cad currency pair and see that it has formed a nice bearish technical structure. It means I am considering selling the pair if the news pushes it below current support price level of 0.9675. However, Canadian dollar looks a bit weak against other European currencies. So, I am going to place a very small order for selling. 

Let’s wait and see what the future brings.

Key Forex news this week

There are a few important pieces of Forex news this week that a trader can hopefully capitalize on. I say hopefully, because not all events create significant volatility and moves. However, a few ones this week should be of interest to most speculators. Let us briefly mention them. 

Wednesday

Bank of England Financial Stability Report (coming at 9:30 GMT). This one should move all pound pairs. I particularly expect gbp/chf break upwards and the outcome for gbp/jpy and gbp/cad one way or another. 

Thursday

EU – German unemployment change (coming at 7:55 GMT). Euro may slip lower in various Euro denominated pairs. 

JPY – Japan National Consumer Price Index (coming at 23:30 GMT). Yen may start a fresh uptrend after a long collapse. Watch particularly aud/jpy, nzd/jpy and cad/jpy as commodity currencies seem to be very weak. 

Friday

EU – German Consumer Price Index (coming at 12:00 GMT). The number is expected better than previous month. Imagine what happens if it is actually worse. It would send Euro down across the board. 

CAD – Canada Gross Domestic Product (coming at 12:30 GMT). One thing is clear: either Canadian dollar will strengthen and reverse or we might see a new downtrend develop as Canadian dollar is near its’ yearly lows. 

I will post an update after tomorrow news from Britain comes. See you then.