Economic calendar: European GDP data in the spotlight

Summary:

• EMU economy expected to maintain previous quarterly pace of growth

• API data forecasted to show another build

• Two Dow stock will report earnings today (Coca-Cola and Pfizer)

After a sluggish Monday investors are being offered a calendar full of key readings on Tuesday. Investors from Europe will be especially interested as preliminary GDP data for third quarter is scheduled for release. Apart from that, inflation prints from the EMU member countries will be published throughout the day with attention drawn mostly to the German reading (1:00 pm GMT). Elsewhere, CB consumer confidence reading will provide a quick update on moods within the US economy. Last but not least, oil traders may be interested in weekly piece of data from API.

10:00 am GMT - Eurozone, GDP for third quarter. The US GDP data released at the end of the previous week managed to beat market expectations highlighting strong fundamentals of the US economy. On the other hand, situation in Europe is completely different. Weaker data was even recognized by the European Central Bank during the latest meeting. Market consensus suggest that the European economy expanded at the pace of 0.4% QoQ in the June-September period. Note that EUR took a hit yesterday following news of Angela Merkel resigning from running for re-election and two crucial readings scheduled this week (GDP today and CPI inflation tomorrow) could be a chance for the main currency pair to rebound from important support zone.

2:00 pm GMT - US, Conference Board Consumer Confidence for October. The University of Michigan consumer sentiment index declined to 98.6 pts in October. Similar outcome is expected when it comes to today’s CB release. The consumer confidence gauge is forecasted to drop from 138.4 pts in September to 136 pts in October. While an expected decline may look worrying one should keep in mind that CB index is at its highest levels since the dot com bubble. Having said that, a potential pullback may not signal a deterioration but just an adjustment.

8:40 pm GMT - API weekly crude oil inventories. The sell-off on the oil market eased a bit recently. However, concerns over trade war escalation fend off bulls yesterday and caused the commodity price to fall. Talks between Trump and Xi scheduled for next week are key for this market as failure to reach agreement may depress riskier assets. However, earlier investors will be offered regular stockpiles data that may be a trigger for short term movement. API data today is expected to show a 3.6 million barrel build.

Central bank speakers scheduled for today:

• 8:00 am GMT - ECB’s De Cos

• 8:15 am GMT - Norges Bank’s Nicolaisen

• 1:30 pm GMT - ECB's Praet

• 2:10 pm GMT - ECB’s Lautenschlaeger

Major US companies reporting earnings today:

• T-Mobile (TMUS.US)

• Pfizer (PFE.US)

• Mastercard (MA.US)

• Coca-Cola (KO.US)

• General Electric (GE.US)

• Facebook (FB.US)

• Ebay (EBAY.US)

Yesterday’s developments in the European politics pushed EURUSD closer to the previous swing level around the 1.1300 handle. GDP and inflation data releases this week may be the last chance for the main currency pair to avoid breaking below. Source: xStation5