Riskier currencies and stocks are in favor of investors. Surprisingly, gold rallies too. Let’s have a closer look.
Will the Canadian inflation rate rise?
Information is not investment advice
The Canadian year-on-year inflation rate will be released at 15:30 MT time on November 20.
The October release of the year-on-year inflation rate was 1.9%. That was below the expected 2.1%. November 20 offers a similar possibility: the forecast is the same 2.1%. If the rate is again 1.9%, that would be the third month in a row of the inflation showing no move in either direction. The analysts advise that the Canadian economy has been on a steady growth course in general, with certain internal weaknesses though. The worse-than-expected jobs data referencing the October employment dynamics may have a negative impact on the inflation rate through lower industrial activity. However, if the announced rate exceeds the market expectation, that should appreciate the Canadian dollar.
- If the inflation rate exceeds the market expectation, the CAD will rise;
- If the inflation rate does not exceed the market expectation, the CAD will fall.
The market takes breath after the long rally. What opportunities do traders have today?
Congratulations! Gold has just opened a new era... or, rather, reopened...