Summary:
- Canadian Ivey PMI to attract attention in the afternoon
- DOE report in the spotlight after Trump’s sanctions
- Reserve Bank of New Zealand to make decision about interest rates
The economic calendar on Wednesday looks interesting with some crucial readings scheduled. Investors will be offered Ivey PMI for October from the Canadian economy in the afternoon. A moment later, oil traders will focus on weekly DOE data concerning crude oil stocks. On top of that, the Reserve Bank of New Zealand will attract attention in the evening as it is set to make an interest rate decision.
3:00 pm GMT - Canada, Ivey PMI for October: Ivey PMI saw a significant drop from 61.9 pts to 50.4 pts last month. Given how closely the gauge moved to the contraction area one can think of it as a worrying sign concerning the Canadian economy. Today’s reading may show whether the recent drop was just a one-off event. October’s reading is expected to show a slight bounce higher to 50.9 pts.
3:30 pm GMT - US, Weekly DOE Report: With the US sanctions in place crude oil is gathering significant attention this week. However, oil prices continue to decline as waivers offered by the US to eight countries eased concerns over possible deficit. Yesterday’s API reading show a major build of 7.8 mb (expected 2 mb) and if it is to be confirmed by today’s DOE data more bearish pressure may be looming. Market consensus suggests crude oil stockpiles experienced a 2.4 mb increase against a 3.2 mb increase seen previously.
8:00 pm GMT - New Zealand, RBNZ Decision: RBNZ decision will be another crucial event for New Zealand dollar this week following a great labour market report published yesterday. As inflation expectations remained unchanged and no breakthrough developments in the NZ economy happened lately it is likely that we will see RBNZ staying on hold.. Such an outcome is widely anticipated but traders will also look for remarks on exchange rate as the NZD appreciated significantly against the USD during the past month.
Central bank speakers scheduled for today:
- 2:00 pm GMT - SNB’s Zurbruegg
- 4:30 pm GMT - Riksbank’s Floden
- 10:45 pm GMT - RBNZ’s Orr
Note that Brent (OIL on xStation5) is approaching the crucial technical level localized around $70 per barrel this week. DOE data may turn out to be a trigger for short-term price swings Source: xStation5
