Wednesday is a busy but still rather disappointing day for investors. In the morning the market received disappointing quarterly data on Australian consumer price indices for the 1st quarter of 2019, which grew less than expected on the market. This increased the probability of a decreasing rate in the near future and led to a wave of sales. As a result, the value of the AUD fell to its lowest level in 6 weeks.
News from Europe also did not bring pleasant surprises. The economic downturn in the EU's leading economy, Germany, continues. The IFO business climate index in Germany fell after the growth in the previous period and did not meet the forecasts.
The main news of the day is expected from Canada in the afternoon when we would get the decision of the Bank of Canada regarding changing the rate, as well as a report on the monetary policy of the Canadian Central Bank. It is expected that the rate will remain at the current level of 1.75%. At the same time, there is every reason to expect a decrease in the CAD rate as a result of such a decision, and given that oil prices today stopped growing and retreated from the price maximum amid reduced fears of a possible shortage of oil after curbing oil supplies from Iran. Perhaps the situation will change with the release of new data on oil reserves in the US today. Investors in any case expect an increase in oil reserves for the week by 1255 million barrels.
