Summary:
- April German IFO will be presented in a new form for the first time
- US housing market may steer moods around the greenback
- API is going to reveal its calculations on a weekly oil stocks change
Tuesday does not look impressively in terms of macroeconomic releases and therefore one may suspect that price movements begun yesterday have a chance to continue. Before noon there will be the IFO reading while the US housing market data should draw attention thereafter.
9:00 am BST – German IFO: Although this is a kind of data which rarely tends to exert increased pressure on the shared currency, this time it seems to be especially of note though. It’s the first time the index will be released in a new form (weights changed since the last print in order to better reflect rising importance of services in the German economy) so do expect a massive downward revision (ca. 10 points) to the print for March. Either way, the index should paint a similar picture what PMIs have showed of late. The consensus stands at 102.8.
3:00 pm BST – US housing data: The US dollar got a boost at the end of last week and it continued this performance on Monday. Yesterday we were offered an existing home sales release showing slightly better than expected numbers. Today it’s new home sales’ turn being forecast to come in at 630k, a rise from 618k in February.
9:40 pm BST – Oil inventories by API: Expectations suggest that oil stocks have shrank 2.6 million barrels during the past week against a 1 million barrels decrease reported in the prior week. As everybody well knows it’s an omen before the governmental data released a day later and for that reason investors watch for this reading so eagerly.
Central bank speakers for today:
8:00 am BST – BoE’s Woods
9:20 am BST – BoE’s Hauser
10:30 am BST – ECB’s Villeroy
After breaking a long-term bullish trend line bears could be eager to test a crucial zone placed nearby 1.2150. Price behaviour around this level could set moods for upcoming days or even weeks. Source: xStation5