Summary:
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Semi-important data from the EMU
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New Zealand’s labour market report expected to show improvement
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Scandinavian central banks dominate speakers calendar
In the Tuesday’s economic calendar one cannot find many crucial readings scheduled. In the morning EMU member countries will published revised services PMI indices for October followed by the reading for the whole bloc at 9:00 am GMT. However, revised data rarely deviates significantly from preliminary readings and therefore seldom is a trigger for bigger price movements. Apart from that, investors will be offered weekly oil stocks data from API and labour market report from New Zealand.
10:00 am GMT - Eurozone, PPI Inflation for September. The PPI inflation from the EMU will be released today but it should be noted that it is unlikely that we will see a big price movement in the aftermath. Nevertheless, investors may want to follow PPI readings in order to try to assess what future CPI inflation prints may look like. Markets expect that PPI inflation will remain unchanged at 4.2% YoY.
9:40 pm GMT - API weekly crude oil stocks. Oil market is in the spotlight this week as the US sanctions on Iran took full effect yesterday. Oil price tried to push higher yesterday but bulls failed to hold gains until the end of the day. However, we are observing declines since the very start of today’s trading. This is mostly due to waivers offered to some countries by the United States as they eased concerns over possible deficit of commodity. The situation on the chart may change in the evening when API inventory estimates will be released. Market consensus expects that the reading will show 2mb build.
9:45 pm GMT - NZ, Labour market report for Q3. This week will be intense for the New Zealand dollar as some crucial readings from New Zealand economy are scheduled. RBNZ will make interest decision on Wednesday while quarterly inflation expectations will be released tomorrow at 2:00 am GMT. However, earlier investors will be offered labour market report for the third quarter of the year. Market consensus expects average hourly earnings to rise 0.8% QoQ and employment to increase 0.5% QoQ. On the annual basis employment is expected to increase 2%. Unemployment rate is forecasted to drop from 4.5% to 4.4%.
Central bank speakers scheduled for today:
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8:30 am GMT - Norges Bank Deputy Governor Matsen
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9:00 am GMT - Riksbank’s af Jochnick
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9:15 am GMT - Norges Bank Governor Olsen
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11:15 am GMT - ECB’s Coeure
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12:00 pm GMT - ECB’s Lautenschlaeger
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3:15 pm GMT - Riksbank Governor Ingves
OIL (Brent) surged yesterday in the early afternoon but bulls were halted by the 200-session moving average (purple line on the chart above). As bears began to dominate later on buyers gave back almost all of the gains. Today’s API reading may serve as catalyst for short term price swing. Source: xStation5
