Summary:
- Existing home sales is the sole reading from the US economy today
- Oil prices trade slightly higher ahead of the DoE release
- Central bank speakers on the agenda at the summit in Sintra
Wednesday is all about a weekly DoE release as well as an avalanche of the most prominent central bankers in the world. Therefore, one may expect heightened volatility both on oil as well as major currencies in G10.
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Create account Try a demo Download mobile app Download mobile app1:30 pm BST - US existing home sales: Yesterday we were offered a mixed bag of housing releases from the US. While housing starts reached its highest level in a decade, building permits lost momentum a bit. Today the consensus points that existing home sales will total 5.52 million in May compared to 5.46 million previously. On the other hand, do notice that constantly (even as gradually) climbing mortgage rates might exert downward pressure on housing activity, hence risks seem to slightly tilted to the downside.
3:30 pm BST - DoE oil inventories: The API report took investors by surprise in terms of oil stocks producing a much larger than thought decrease. It’s helped oil prices erase recent losses, but it may stay under pressure due to the impending OPEC/non-OPEC meeting. Expectations suggest the DoE will show a 2.43 million barrels draw in oil stockpiles, while gasoline inventories should shrink 0.668 million barrels. At the same time refinery utilization is forecast to fall by 0.14% (there was a 0.3% increase last week).
Central bank speakers for today:
- 8:30 am BST - ECB’s Villeroy
- 9:00 am BST - ECB’s Lautenchlaeger/Nowotny
- 10:45 am BST - ECB’s Knot
- 11:30 am BST - ECB’s Coeure
- 2:30 pm BST - a policy panel taking place in Sintra, Portugal: Draghi, Lowe, Powell, Kuroda.
The EURSEK could see a possible triple top pattern at around 10.35. Source: xStation5
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