Summary:

  • Jerome Powell to speak at SNB/IMF event in the morning

  • Donald Trump to announce his decision on the Iranian Deal

  • API oil stocks reading expected to show a decrease

Taking a look at the Tuesday’s macroeconomic calendar one could say that it is going to be a rather calm day. However, as Donald Trump tweeted that he will announce his decision regarding Nuclear Deal on Tuesday evening we can expect volatility to be there. Moreover, the Fed chairman Powell will deliver his speech on monetary policy at SNB/IMF Conference in the morning. Last but not least, oil traders will be served a weekly data on oil stocks by API.

8:15 am BST – Jerome Powell speech at SNB/IMF Conference in Zurich. Fed chairman Jerome Powell will attend the event in Zurich where he will speak on the influence of monetary policy on global financial conditions and international capital flows. Investors may want to listen to his speech carefully for any remarks on the current economic conditions and possible monetary developments. Moreover, the speech will be followed by the Q&A session therefore one can expect increased volatility on the USD tied FX pairs given the importance of this person.

7:00 pm BST – Donald Trump to announce his decision on the Iranian Deal. The nuclear deal with Iran is the topic that has been steering markets in the recent days. In case Donald Trump withdraws from the agreement and decide to renew sanctions on the Iranian economy a significant part of the global oil output may be in danger therefore a surge on this market may occur. However, given the fact that almost everyone urges Trump not to do it and that some time ago Trump himself stated that he does not like higher oil prices the situation may not be that dramatic. Nevertheless, you never know how will it go in the Trump world.

9:30 pm BST – API Weekly Crude Oil Stocks. The oil market has been steered by the geopolitical tensions recently. However, as US President is expected to announce his decision on the Iranian deal ahead of this reading investors may already digest his decision and once again focus on the regular oil-related data. Market consensus point for a 1.2mb decrease against prior increase of 3.4mb.

Central bank speakers scheduled for today:

9:30 am BST – Riksbank Deputy Governor Jansson

3:00 pm BST – ECB’s Liikanen

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OIL has retreated from the $76.30 handle following Trump’s tweet yesterday. Investors are waiting for his decision on the Iranian Deal at 7:00 pm BST. Source: xStation5