By FX Empire.com
The USD/CAD pair rose on Tuesday, as pessimism continued to dominate markets on fears from slowing global growth and concerns from the EU debt crisis, where China reported growth that disappointed investors, as the Chinese economy expanded at the slowest pace in two years, while Moody’s Investors Services said it is reviewing France’s Triple-A rating, which pushed investors away from higher yielding assets, where traders targeted lower yielding assets including the U.S. dollar, which sent the USD/CAD pair higher.
Traders will continue to monitor the latest developments from Europe, where more pessimism could provide the USD/CAD pair with more bullish momentum on Wednesday. We should also note that traders will be eyeing CPI inflation from the United States, in addition to the Fed’s Beige Book, and Canada’s leading indicators on Wednesday.
Wednesday October 19:
The United States continues with the inflation data at 12:30 GMT with the Consumer Price Index for September. The CPI is expected to rise 0.3% on the month after 0.4% gain and on the year to hold at 3.8%, while Core CPI is expected to hold the monthly gain at 0.2% and on the year to rise slightly to 2.1% from 2.0%.
The data continues with the Housing Starts for September also at 12:30 GMT and expected to rise to 594 thousand from 571 thousand. Building Permits on the other end are expected with 2.4% drop to 610 thousand from 620 thousand.
Canada will release the leading indicators index for September, where the leading indicators index was flat back in August.
The final release for the United States on Wednesday will be the Fed’s Beige Book at 18:00 GMT.
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