On Wednesday, May 29, 2019, the markets will be interested in the release of economic calendar data, which usually results in changes in price movements - the economic agenda is a key tool for the basic analysis of the news to predict markets’ performance. Therefore, caution must be taken to determine the results of these actual data to make the right trading decision. The economic news today are:
New Zealand Business Confidence from ANZ: In New Zealand, the ANZ Business Confidence Index came in at -37.5. The month reading was slightly changed from the 38.0 level announced the previous month. Economists expected the index to come in at -42.8. Inflation expectations and pricing intentions remained relatively stable. At the same time, cost pressures have declined. However, earnings forecasts, activity expectations, export intentions, investment intentions and employment indicators improved.
NZRB Governor Adrian O'Hare's testimony: Adrian Orr, governor of the Reserve Bank of New Zealand, is due to testify on the Financial Stability Report in New Zealand before the Wellington House Selection Committee. The NZD is often fluctuating against other major currencies during his comments, as traders try to understand the direction of interest rates.
Bank of Canada Monetary Policy Statement: The Bank of Canada uses the Interest Rate Statement as a tool for communicating with investors on monetary policy, as it provides the results of the members’ decision on interest rates and also a comment on the economic conditions that affected their decision. More importantly, it provides an economic insight and clues about the direction of future policy decisions.
Canadian interest rate: At the April meeting, the Bank of Canada decided to keep the key interest rate as is at 1.75% as analysts widely expected. This is the highest interest rate since December 2008. Policymakers said it was necessary to pursue a concessional interest rate policy. The Committee also noted that an appropriate degree of monetary policy would be assessed on the basis of developments in household spending, global trade policy and oil markets.
Expectations for the May 2019 meeting: 1.75 percent interest rate unchanged.