Summary:

  • Important figures concerning German and Eurozone’s labour market to be released in the morning

  • A pack of data from the US and last Yellen’s FOMC meeting

  • Official government report on oil inventories will take the stage in the evening

Taking a look at the Wednesday’s calendar one can spot that it is filled with data from Europe and the United States. In the morning unemployment data from Germany and Eurozone may spur increased volatility on FX pairs tied with EUR. In the afternoon US ADP report and pending home sales print will be released as well as Canadian GDP print. Later on DOE report will draw attention of the oil traders. Last but not the least, the last FOMC meeting presided by the Janet Yellen will take place in the evening.

8:55 am BST – Germany, Unemployment Rate and change for January. An important reading concerning labour market of the Eurozone’s biggest economy. The German labour market was doing really well as of late. We have not seen an increase in the unemployment rate since October 2013. The number of unemployed people was also constantly decreasing since June 2016. This time market consensus points for a print -17K against -29k seen last month, while the unemployment rate is also expected to decrease slightly to the level of 5.4% against 5.5% seen last month.

10:00 am BST – Eurozone, CPI and Unemployment Rate. Investors may want to watch out for the preliminary print of Eurozone CPI as it is one of the key factors ECB takes into account while deciding on the monetary policy. The headline reading is expected to fall to 1.2% YoY against 1.4% seen last time. Simultaneously the unemployment rate for December will be published and it is expected to show value of 8.7% what would be in line with the prior reading.

1:15 pm BST – US, ADP Nonfarm Employment Change for January. An indicator measuring the number of people employed during last month. We have not seen a decrease since late-2010 and also this time surveyed economists point for the increase of 186k against 250k seen last time. Keep in mind, that this reading is often used by traders as a predictor of the official Labour Market Report that is scheduled for release on Friday.

3:00 pm BST – Canada, GDP for November. A print showing the level of economic activity in Canada. The Canadian economy disappointed a little as its GDP has shown the value of 0% MoM against expected 0.2% last time. This time Bloomberg survey points for a reading of 0.4% MoM. In YoY terms the GDP is expected to maintain on the prior level of 3.4%.

3:30 pm BST – US, Crude Oil Stocks. An official DOE report on the US oil inventories. Yesterday’s API report suggested a huge build in the inventories showing an increase of 3.229M. Will today’s DOE report confirm this tendency? Keep in mind that the DOE and API has shown contrary values last month. Surveyed economists point for a modest increase of 308.8k.

7:00 pm BST – US, Fed Interest Rate Decision. The last FOMC meeting headed by the Janet Yellen. The meeting might be more nostalgic and sentimental as the markets predict no changes in the level of interest rates will be made. The first rate hike is expected to take place in March with 75% OIS-implied probability.

Central banks speakers scheduled for today:

8:55 am BST – ECB’s Lane

10:00 am BST – Riksbank’s Ingves

9:50 am BST – ECB’s Coeure

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Euro continues its rally after a modest correction in the post-ECB days. Will today’s data let dollar get a second breath. Source: xStation5