EUR and German CPI, 12:00 GMT




  • Previous 1.1%- Expected 1.3%

  • Above Expected: EUR Bullish

  • Below Expected: EUR Bearish

  • Key pairs to watch: EUR/USD, EUR/JPY


Being a preliminary reading of German inflation, its impact over the EUR will be larger, although dependant on the degree of deviation from the market expected number. Rising inflation will become a concern in the long term although short term positive, while a reading below expected will likely raise concerns over the situation of the country, and weight on the EUR. 



Market players are choosing to disrupt the correlation between data, stocks and sentiment trading that ruled the market since early 2008, leaving EUR crosses on its self strength/weakness for upcoming data.



CAD and BOC rate decision, 14:00 GMT




  • Previous 1%  - Expected 1%

  • Rate cut/Dovish stance: CAD Bearish

  • Rate rise/Hawkish stance: CAD Bullish

  • Key pairs to watch: USD/CAD, CAD/JPY


BOC overnight rate has been maintained steady at 1.0% since late 2010, and there are not many chances it will be changed within the upcoming meetings.  However, what can actually affect Canadian Dollar is the Central Bank economic outlook on growth, and reviews over previous forecasts.  An upward revision that suggests a brighter economic future should help CAD advance, particularly against weaker currencies such as JPY, while a downward revision will support further CAD slides, particularly against USD.