Economic calendar: US industrial production and NY Fed in the market spotlight

• The market is focused on the situation of the Bank of Japan, which once again faced a possible policy change
• Contracts for European indices open slightly higher after rolling over and continue their rally
• New York County regional industry index and U.S. industrial production in focus

Today's session is not full of very significant economic data. The revision of inflation in France turned out to be higher than forecast, and the next important readings will only be data from the US market, where at 1:30 pm we will learn about import and export prices and the NY Fed regional index. After that, traders will focus on industrial production and consumer sentiment according to the University of Michigan, as well as inflation expectations, which for annual inflation are expected to show a slight increase.

In the Asian session, sentiment was mostly weak, with losses in Chinese and Korean indices and the Nikkei. Now, however, Japanese benchmark contracts (JAP225) are gaining, on a wave of further yen weakness. This is despite comments suggesting strong wage increases negotiated by Rengo unions and the government's determination to maintain the trend of rising wages. The market seems to expect a rather 'soft' BoJ stance and no clear determination to fundamentally overhaul existing policy; the USDJPY pair erased initial declines, further supported by a stronger US dollar.

Economic calendar

7 AM GMT, Swedish unemployment rate (seasonally adjusted): 8% vs. 8.2% forecast and 8.2% previously

7:45 AM GMT, CPI inflation y/y from France (final): 3% vs 2.9% in the first reading (0.9% m/m vs 0.8% previously)

• HICP y/y : 3.2% vs. 3.1% in the previous reading

9 AM GMT Italy HICP inflation y/y (final): 0.9% forecast vs. 0.9% previously 

10 AM GMT Retail sales from Italy, -0.1% previously (0.3% seasonally adjusted)

12:15 AM GMT Canadian home construction starts: 227.5k vs. 223.3k previously

12:30 AM GMT Canadian wholesale sales: -0.6% forecast vs. 0.3% previous

12:30 AM GMT, NY Fed index: -7 forecast vs -2.30 previously

• Import prices: 0.3% forecast vs 0.8% previous
• Export prices: 0.4% forecast vs 0.8% previous

1:15 PM GMT, US industrial production: 0% forecast vs -0.1% previous

• Manufacturing production: 0.3% vs -0.5% previously

2 PM GMT, Consumer Sentiment by University of Michigan: 77.1 vs 76.9 previously

• Expectations Index: 75.1 vs 75.2 previously
• Current Situation Index: 79.7 vs 79.4
• Annual inflation expectations: 3.1% vs 3% previously
• Five-year inflation expectations: 2.9% vs. 2.9% previously

Central bankers speeches

• 9:35 AM GMT - ECB Vujcic
• 14:30 PM GMT - ECB Lane