Pending Canada's decisions. Important speeches of the day. China's weakening exports
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The speeches will be the most important events in the international arena today. Everyone is also awaiting Canada's decision on interest rates.
China’s export and import
China today at 5 CET released data on exports and imports.
Last year, exports in China remained above 20%, this year is much weaker. The results for this year are below 20%, the lowest results so far have been achieved in exports (3.9%). Then it increased significantly and in each subsequent month it was above 15%. In July it reached the level of 18%, but despite such a result, the forecasts for the month of August were much lower than 12.8%). After the data breakdown, we know that the level of exports for August is much lower than forecasted at 7.1%. China did not expect such a decline.
Source: investing.com
China also recorded a significant decline in imports. Imports fell from 2.3% in July to 0.3% in August. The current year in Chinese imports is very low compared to '21. China, due to the geopolitical situation, decided to significantly reduce the amount of all goods and services brought into the country from another country in a legitimate fashion, typically for use in trade. Import goods or services are provided to domestic consumers by foreign producers.
Source: investing.com
Canada’s top information
Canada will release two important figures today.
The first concerns the main topic of this week - the interest rate. Official data will be released at 16:00 CET. At the same time will be released data on the level of activity of purchasing managers in Canada.
Canada’s interest rate read more: Rising Interest Rates. How High Can They Rise?| FXMAG.COM
Canada Ivey Purchasing Managers Index, despite a weak beginning of the year at the level of 45.0, was gradually increasing from month to month and was above 50. This trend changed in July and the index reached the level of 49.6. It was a significant drop from 62.2. Forecasts for August are also on the decline. The index is expected to drop to 48.3.
The index is a joint project of the Purchasing Management Association of Canada and the Richard Ivey School of Business. Traders watch these surveys closely as purchasing managers usually have early access to data about their company’s performance, which can be a leading indicator of overall economic performance.
Source: investing.com
Many Speeches
Many speeches are scheduled for today.
- The first major speech was at 5.00 CET. Luci Ellis , Assistant Governor of the Reserve Bank of Australia (RBA) spoke. Her public involvement, as usual, was to give up subtle hints about future monetary policy.
- German Bundesbank Balz Speeches is scheduled at 9:55 CET.
- Elizabeth McCaul, member of the Supervisory Board (ECB representative), is set to speak at 10:20 CET. Her speeches often contain indications on the future possible direction of monetary policy.
- Four important speeches are scheduled in Britain at 11 CET:
- Bank of England (BOE) Governor Andrew Bailey (Mar 2020 - Mar 2028) is to speak. As head of the BOE's Monetary Policy Committee (MPC) which controls short term interest rates, Bailey has more influence over sterling's value than any other person. Traders scrutinize his public engagements for clues regarding future monetary policy. His comments may spark a short-term positive or negative trend
- Dr Catherine L Mann serves as a member of the Monetary Policy Committee (MPC) of the Bank of England. Her public engagements are often used to drop subtle clues regarding future monetary policy.
- Bank of England Monetary Policy Committee (MPC) Member Pill
- Silvana Tenreyro serves as a member of the Monetary Policy Committee (MPC) of the Bank of England. Her public engagements are often used to drop subtle clues regarding future monetary policy.
- Richmond Fed President Thomas Barkin is set to speak at 15 CET. His public engagements are often used to drop subtle clues regarding future monetary policy.
- The European Central Bank Supervisory Board Member Kerstin af Jochnick's Speech can clarify certain aspects of the financial regulation in the eurozone. The speeches of the ECB's officials often contain references to possible future monetary policy objectives, assessments and measures. The ECB's Supervisory Board, which meets every three weeks, is responsible for the planning and execution of the ECB's supervisory tasks. These tasks include the determination of capital buffers, the granting or withdrawal of banking licenses, the imposition of enforcement measures and sanctions against major banks. The Supervisory Board meets every three weeks to discuss, plan and carry out the bank's supervisory tasks. The Board consists of a Chair, Vice-Chair, four ECB representatives and representatives of national supervisors. Kerstin af Jochnick is the economist and the ECB representative in the Supervisory Board. The speech by Kerstin af Jochnick, member of the ECB's Supervisory Board, may contain indications of the ECB's objectives and actions, depending on the subject matter and wording. However, her speeches rarely have a direct effect on euro quotes. This speech is set at 19:15 CET.
Amreican’s Energy Information
The Short-Term Energy Outlook (STEO) provides the U.S. Energy Information Administration’s (EIA) near-term perspective on energy markets. Each month, the STEO provides forecasts through the end of the next calendar year for consumption, supply, trade, and prices across major fuel types. In addition, the STEO provides in-depth market analysis for crude oil, petroleum products, and natural gas markets. Although its emphasis is on U.S. energy markets, the STEO also includes forecasts for certain international liquid fuels markets. The date will published at 18 CET.
