Summary:
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UK labour market report to show another solid wage growth figures
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Japanese economy is said to have contracted in the third quarter
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Central bankers may spur volatility on the FX market
In Tuesday’s economic calendar one can find few but quite interesting readings. The UK labour market will be released in the morning and traders will focus on whether solid wage growth will be maintained. Not long afterwards investors will be served ZEW indices from Germany. On top of that, the Japanese GDP report for Q3 will be released in the late evening therefore JPY traders should stay cautious. Vast array of scheduled central bankers’ speeches will round up the day.
9:30 am GMT - UK, Labour market report for September. The latest report from the UK labour market saw a decent pick-up in wage growth figures. The average weekly earnings excluding bonuses print showed pace of growth of 3.1% YoY, the highest since 2009. Economists expect this gauge to remain at previous level while figure concerning earnings with bonuses is forecasted to accelerate further from 2.7% YoY to 3% YoY. While GBP may be now mostly steered by Brexit developments investors should be aware that once the UK finally leaves the European Union we may see more hawkish attitude of the BoE members.
10:00 am GMT - Germany, Zew Economic Sentiment for November. The German ZEW index is one of the most widely followed survey gauges from the Old Continent. The economic sentiment index slumped to -24.7 pts in July, the lowest since 2012. After a brief recovery the gauge once again visited this level last month. Having said that, investors will closely examine today’s reading to see whether moods among investment professionals in the Europe’s biggest economy improved or not.
11:50 pm GMT - Japan, GDP report for Q3. Last but not least, it should be noted that in the late evening preliminary GDP report from Japan for Q3 will be released. Expectations ahead of a release does not paint a rosy picture of the Japanese economy. Namely, the economy is expected to have contracted 1% YoY and 0.3% QoQ. The capital expenditure growth is seen decelerating from 3% QoQ in Q2 to just 0.6% QoQ.
Central bank speakers scheduled for today:
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8:00 am GMT - ECB’s Praet
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8:45 am GMT - ECB’s Lautenschlaeger
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1:00 pm GMT - Norges Bank’s Nicolaisen
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2:00 pm GMT - Riksbank’s Ohlsson
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3:00 pm GMT - Fed’s Kashkari and Brainard
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7:00 pm GMT - ECB’s de Guindos
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7:20 pm GMT - Fed’s Harker
EURGBP took a step back following rally from April-August 2017. However, the pair seems to be continuously unable to break below the 61.8% Fibo level of the upward impulse localized around 0.87 handle. Source: xStation5
