Talking Points:
- Trade tensions are back in the spotlight after Friday’s announcement that US President Trump was ordering tariffs on $200 billion of Chinese imports.
- Inflation figures due out over the coming week may not carry the potency that they usually do – but the Canadian CPI report seems like it has the greatest potential to leave an impact.
- Retail trader sentiment[1] is starting to turn back in the US Dollar’s favor after a disappointing week of trading.
Join me on Mondays at 7:30 EDT/11:30 GMT[2] for the FX Week Ahead webinar, where we discuss top event risk over the coming days and strategies for trading FX markets around the events listed below.
09/17 Monday | 09:00 GMT | EUR[3] Eurozone Consumer Price Index (AUG F)
The final August Eurozone Core CPI is due in at +2.0% (y/y), a slight drop from the initial reading reported in at +2.1%. The final core reading for August is set to be confirmed at +1.0% (y/y), down from +1.1% in July. The Euro, on a trade-weighted basis, is down over the past year, so it stands to reason that inflation has a natural cushion underneath it for the foreseeable future. As was confirmed at the September ECB rate decision, policy remains on a preset course – ending QE in December 2018 and raising rates in “summer 2019” – as the Governing Council has greater confidence in the path that inflation will take moving forward. Accordingly, there is only limited scope for a significant move
