DATA-DRIVEN TUESDAY TO SWAY INVESTOR SENTIMENT
After a slow start to the week, economic data are back in focus, with reports from both sides of the Atlantic scheduled to make headlines.
The action picks up at 07:00 GMT with a report on German consumer prices. Germany’s CPI index is forecast to rise 1.6% annually in October. The so-called Harmonized Index of Consumer Prices is expected to come in at 1.5%.
The German government will also release a preliminary report on third quarter GDP. Europe’s largest economy is projected to rise 0.6% in the third quarter, which translates into a year-over-year gain of 2.3%.
The Spanish government is also expected to produce the latest inflation figures on Tuesday. Later in the day, the Swiss will unveil their latest report on factory-gate prices. Italy and Portugal are also expected to release their latest GDP figures.
The United Kingdom will see a heavy release schedule on Tuesday, including reports on consumer inflation, retail prices and the producer price index (PPI).
Eurozone data will also make headlines at 10:00 GMT with reports on gross domestic product, industrial production and institutional investor sentiment.
In North America, the US Labor Department will issue its latest report on producer inflation. The producer price index (PPI) is expected to climb 2.4% annually in October, following a gain of 2.6% the previous month.
On the monetary policy front, Bank of England Governor Mark Carney is scheduled to deliver a speech at 10:00 GMT. In the United States, St. Louis Federal Reserve President James Bullard will deliver remarks at 13:15 GMT. Fifteen minutes later, European Central Bank (ECB) official Benoit Coeure is also scheduled to deliver a speech.
Earlier in the day, the Chinese government reported slower than expected growth across retail sales, industrial production and urban investment. Retail sales rose 10% annually in October; industrial production climbed 6.2% and urban investment added 7.3%.
The euro advanced sharply at the start of the week, with the EUR/USD approaching 1.1700 for the first time since late October. The pair faces immediate resistance at 1.1690, a region of prime selling interest. On the opposite side of the ledger, immediate support is located at 1.1620.
Cable recovered some lost ground on Monday after briefly falling below 1.3100. The GBP/USD exchange rate was last seen trading at 1.3117. Immediate support for cable is located at 1.3061, which represents Monday’s bottom price. On the flipside, resistance is located at 1.3140.
The US dollar gained ground against its northern rival on Monday, with the USD/CAD racing back toward 1.2740. This pair is expected to see much more volatility later in the week as market participants weigh the latest batches of US economic data.