Summary:

  • UK construction PMI will be a key release before noon
  • API to report its weekly change on oil stockpiles
  • Two noteworthy speeches from central bankers

Today’s data-wise is rather calm, hence construction PMI from the UK’s economy could be the most important print before noon. Let us remind that we got a sub-par manufacturing PMI yesterday, so the GBP might be under downside pressure if we get another bleaker reading today. Moreover, speeches from reappointed Riksbank chair and FED’s Powell are on the agenda as well.

9:30 am BST – UK construction PMI: The construction sector in the UK’s economy has performed the worst compared to manufacturing and services of late. A marked slowdown has caused some concerns about GDP growth, though those risks have been offset by quite strong manufacturing which slid in September. Thus, the British pound needs to better data in order to recover following a weak manufacturing release yesterday, this is especially true when the US dollar is getting firmer. The consensus suggests 51.1, the same as it was in August.

9:40 pm BST – Crude oil stocks by API: Oil prices had the excellent last week fueled by the Kurdish referendum which threatened a closure of some oil facilities in Turkey. On the flip side, we got a weaker report on Friday that OPEC’s output in September had been higher than a month before. On top of that, US oil rigs count rebounded which could dampen further gains going forward.

Central bank speeches:

10:30 am BST – Riksbank’s Ingves: Stefan Ingves was reappointed as a chair of the Swedish central bank last week which made the SEK tumbling. He will have an opportunity to sketch out his vision with regard to monetary policy for the next 5 years.

1:30 pm BST – FED’s Powell: Jerome Powell is among those who would be the next FED’s chair when Yellen’s term expires in February. Thus, market could pay yet more attention to his remarks. In this respect, let us come forth with the broader analysis concerning Kevin Warsh.

5:30 pm BST – BoC’s Leduc

link do file download linkWTI oil prices have fallen recently and could test $50 once again. If the price bounces back, it could bring about a move towards $52. Source: xStation5