London session traders are in for a GDP parade as France, Germany, and the Eurozone are set to print their growth numbers.
Will this lead to an extended uptrend for EUR/CAD?
Check out the top headlines from the U.S. and Asian session so y’all know what the major market themes are first:
- ECB leaves rates unchanged but signals more stimulus may come in December as COVID-19 rips into the economy
- ECB’s Lagarde: Economy losing momentum faster than expected
- U.S. economy posts record growth in third-quarter; COVID-19 scarring to last
- U.S. weekly jobless claims fall to 751,000
- U.S. pending home sales cool in September, down 2.2%
- Task force sees ‘unrelenting’ COVID-19 spread; daily U.S. cases up by record 91,000
- Tokyo overall inflation sinks 0.3% on year in October
- Japan employment remains weak as service sector cuts back
- Japan’s factory output rises for fourth month on jump in car, machinery production
- Australia’s producer prices up by 0.4% as expected in Q3
- Bitcoin rally getting added boost from ‘wrapped’ crypto tokens
- Asian shares falter again, poised for first weekly loss since late-Sept
- Yuan rises as China charts new 5-year economic plan
Upcoming Potential Catalysts on the Economic Calendar:
- Japan’s housing starts at 5:00 am GMT
- France’s Q3 GDP at 6:30 am GMT
- Germany’s retail sales at 7:00 am GMT
- U.K.’s Nationwide house price index at 7:00 am GMT
- Switzerland’s retail sales at 7:30 am GMT
- Swiss KOF economic barometer at 8:00 am GMT
- Germany’s preliminary GDP at 9:00 am GMT
- Italy’s preliminary GDP at 9:00 am GMT
- Eurozone CPI flash estimate at 10:00 am GMT
- Eurozone’s preliminary GDP at 10:00 am GMT
- Canada’s GDP at 12:30 pm GMT
- U.S. core PCE at 12:30 pm GMT
What to Watch: EUR/CAD
In case you were too busy binging on Netflix’s “The Queen’s Gambit,” then you should know that the euro was knocked lower across the board yesterday after ECB President Lagarde hinted that the loss of the economy’s momentum was faster than expected, enough for her and her team to plan a December easing.Lagarde’s concerns will get a bit clearer today when the Eurozone, Germany, France, and Italy all print the first readings of their Q3 GDP.
Surprisingly upbeat GDP reports might push EUR/CAD into extending its uptrend on the 4-hour time frame. In fact, the euro could hit the 1.5600 area of interest or even the 1.5650 previous high if traders are optimistic enough.
But what if the anti-euro vibe comes back? Remember that Germany and France are imposing partial lockdowns and that it’s possible that the ECB’s December easing may not yet cover the impact of these latest measures. It doesn’t help that traders will likely
If euro bears continue to drag the common currency and break October 28’s lows, then EUR/CAD could head towards the 1.5440 previous area of interest.