- China’s five year plan
- Germany stays resiliant
- Yuan consideration by IMF
- Currencies trading flat
With very little going on in currency markets this Monday session, analysts will pay close attention to the Central Committee of China’s Communist Party plenary meetings starting today. This key four-day meetings serve to finalize the nation’s economic and social policies for the next five years. This is particularly important for global economies, as many of them heavily depend on China’s trade health and economic performance.
Some of the topics that will be covered in the meetings include accelerating state-sector restructurings, reducing pollution, fighting slow growth, and perhaps the most important one, the addition of the yuan to the IMF’s Special Drawing Rights basket of currencies. China has been taking convincing steps towards liberalizing its financial system so it’s likely we will see meaningful considerations and debates in regards to the yuan addition.
In Europe, German businesses climate reported little change in expectations in today’s IFO report, showing that Europe’s largest economy remains resilient to the slowdown in China and the emissions scandal at Volkswagen.
EURUSD is trading flat compared to last week’s close, and with very little economic news and events on deck, the currency pair is likely to continue trading unaltered.
GBPUSD is also trading relatively unchanged even though the U.K. released its CBI Industrial Trends Survey which highlighted a slightly negative outlook for industrial output in the country for the months to come.
USDCAD is showing no changes since Friday’s close, and the currency pair will likely remain this way throughout today session.