Running through the economic calendar today, we see a few data releases that warrants some attention if you are trading the British pound and the Canadian dollar. In this post, I will just summarise the main key points of the data and how it may impact you and me as traders as we take positions on that particular currency. if you desire more information, proceed to forexfactory.
Data to look out for the Pound:
1. PPI Input m/m
Notes: Its released ahead on the Consumer Price Index (CPI). As such, we are also looking at the overall inflation of the country. Inflationary tendencies now can be an indication of an economy that is recovering. So, if you are long the Pound, you want this figure to go up.
Data to look out for the Canadian Dollar:
1. Employment Change
Notes: Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity. If you are long the Canadian dollar, you would want this figure to go up.
2. Unemployment Rate
Notes: Although it’s generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions. If you are long the Canadian dollar, you would want the number to go down.
That’s all for the red flag in economic data folks!
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