Greenback Surge

The greenback strengthened today as the the country’s index of business conditions rose to its highest level since 2014. The likely catalyst for this is the Federal Reserve meeting which is slated to happen at the end of this month. A month ago, the likelihood of a rate hike stood at just 50%, but it now stands at an astonishing 90%.

There are no big data releases for the U.S this week apart from the Industrial Production data that will be released on Tuesday.

Theresa May heads to Brussels.

The British PM heads to Brussels as the discussion with other EU leaders continue. Britain’s exit from the region has been a cause for concern and it is gathered that PM May wouldn’t be offering any new concessions to leaders of the EU.

Her spokesman said that May hopes to move matters in a positive direction when they meet tonight. The other EU leaders re-insisted that they will only open trade talks with Britain when PM May tells them how she plans to pay for the exit bill which will cost Britain tens of billions of euros.

Monday’s Trading

At the London and USA session Monday, trading was pretty tight-ranged though the CAD experienced heavy selling action. This was due to the pressure that the currency received after the NAFTA-related issues.

At the Asian session this morning, the Euro suffered loses but bounced back during the London session, although overall the Euro is trending lower. We sent a Forex Signal to trade the EURUSD pair, although as of this writing, the trade has not yet activated.

CAD

The CAD performed badly at the London session even though oil prices were positive. No economic data was released by the North American country but a report released by Bloomberg regarding a delay in NAFTA talks had affected the Loonie.

Upcoming Major Events

Here are the remaining major events for the week.

UK inflation data:Tuesday, 8:30.

The impending rate hike by the BOE next month is almost certain but what isn’t known is if it is just one instance or the beginning of a series of rate hikes. The inflation data has a lot to contribute to that decision. The inflation data released for August indicated an annual rise of 2.9%. For the month of September, the data is supposed to go up to 3%.

Bill Dudley talks: Wednesday, 12:00.

With the Fed Vice Chair Stanley Fischer stepping down, Dudley is the second in command and his comments matter a lot. Just like Yellen, Dudley will make a speech regarding the inflation data.

US housing data: Wednesday, 12:30.

The reports that were released for the month of August showed that building permits stood at 1.27 million while housing starts performed a little worse with just 1.18 million. Positive numbers from both data will see the greenback gets stronger in the market. However, that might not be the case, Building permits are expected to drop down to 1.25 million while the housing starts might remain unchanged.

Australian jobs report: Thursday, 00:30.

The data released in August revealed that Australia had a big leap in jobs, recording a 54.2K growth. For the month of September, an increase of 15.2K is expected. The unemployment rate in Australia currently stands at 5.6% and analysts see this figure remaining unchanged.

Chinese GDP: Thursday, 2:00.

As the world’s second-largest economy, this data is a very important one. For the third quarter of the year, the GDP estimate is expected to be 6.8%. If that happens, then it has dropped slightly from the 6.9% that was recorded in the Q2 of the year. The country will also release other data like industrial output, retail sale, and several others.

US Existing Home Sales: Friday, 14:00.

This is the last event for the week. For the month of August, the numbers were disappointing, the annualized sales stood at 5.35 million. It will even be more disappointing as the figure for the month of September will drop to 5.32 million