Economic calendar: Will ECB speakers shake the euro market?

Summary:

• Several ECB members to speak at the event in Paris

• Canadian manufacturers expected to increase sales in July

• Oil inventory data forecasted to show an increase in stocks

With new tariffs in place the the US trade practices will attract increased attention in the days to come. However, one cannot forget about regular data stream. In today’s calendar we have just a few noteworthy readings planned. HUF traders may want to keep on guard at 1:00 pm BST as the Hungarian central bank will make its interest rate decision (main rate expected to be left unchanged at 0.9%). Apart from that, one should be aware that increase volatility may surface on the EUR tied FX pairs in the morning as several ECB members will deliver speeches at the event organized by the French banking and insurance sector supervisor.

1:30 pm BST - Canada, Manufacturing Sales for July. A semi-important piece of data from the Canadian economy. The manufacturing sector is not as big as the services one in Canada but it still accounts for over 10% of the GDP therefore it is wise to follow data from this sector as well. Canadian manufacturers were doing quite well this year with just two months (January and April) showing a decline in the sales value on MoM basis. This time market consensus points for a 0.7% MoM advance against previous 1.1% MoM.

9:40 pm BST - API weekly oil inventories. While oil WTI still trades within some distance of this year’s highs Brent managed to once again retest the $80 handle. However, bulls were once again unable to maintain gains and in turn we saw pullback below the $78 handle. Geopolitics still dominate this market (Iranian exports) but inventory data may spur short term swings. Today’s API reading is expected to show a 1.3mb increase in the oil stocks.

Central bank speakers scheduled for today:

• 8:00 am BST - ECB’s Draghi and Villeroy

• 8:30 am BST - ECB’s Nouy

• 9:10 am BST - Riksbank’s af Jochnick

Brent (OIL) bulls seem to be exhausted as the price once again failed to break above this year’s high. OIL trades in between 8- and 21-session moving averages and could use a boost from data. Source: xStation5