Summary:

• Haldane’s speech could affect GBP
• the DOE report is crucial for oil prices
• RBNZ decision could be tremendous for the NZD

Wednesday’s economic calendar is relatively empty throughout the European session but intensifies later on as there couple of potential market movers. In a chronological order they key ones are as follows:

12:00pm (BST) – Bank of England’s Haldane speaks in Yorkshire – the GBPUSD declined to post-election lows yesterday as Mark Carney ruled out interest rate hike at this stage and we can have more of the same from Haldane today. The BoE’s chief economist is one of the most dovish MPC members and he could well lay out arguments why the policy needs to stay accomodative. GBP remains in a downtrend on many pairs including GBPNZD where our technical signal remains active and returns to averages (red circles) could provide interesting short opportunities. 

A downward trend on GBPNZD continues. Haldane’s speech and the RBNZ decision will have an impact on the pair today. Source: xStation5 

3pm – US existing home sales (consensus 5.55m) – the US dollar enjoyed a rally but let us recall that the data mix has been dismal as of late. Another shaky reading could undermine the greenback.

3.30pm – the DOE report on inventories – oil prices could really use a strong report here. Past two weeks brought severe declines in prices as US inventories turned out higher during a period when these should decline and another weak report could see prices reeling. The API report released yesterday pointed at inventory draw and if that is replicated today (especially if a draw exceeds 2mb) prices could eventually find a support. 

10pm – the RBNZ meeting – the Bank will maintain rates unchanged but signals regarding future rates could have a significant impact on the NZD. The Bank will need to weigh solid macroeconomic data that’s been released recently against appreciating currency. Do consider that the NZD is already fairly high against many currencies and could be prone to a profit-taking.