Summary:

  • A vast array of preliminary PMI readings to be released today

  • UK central bankers will testify on inflation before Parliament’s Treasury Committee

  • Release of the FOMC Minutes in the evening may shake markets

After the lack of top-tier economic releases on Monday and Tuesday they seem to flood Wednesday’s calendar. Throughout the day preliminary PMI readings from European economies are going to be released. Moreover, data from the UK labour market and US housing market will be published. UK central bankers including Governor Carney will address latest inflation report in the early afternoon while Minutes from the FOMC meeting are going to be released in the evening.

8:30 am BST – Germany, PMIs for February. The German economy has been in a superb condition as of late. However, we have seen manufacturing PMI fall a little in January after reaching multi-year high of 63.3 pts in December. This time market consensus points for a reading of 60.5 pts when it comes to manufacturing PMI and 57 pts for services PMI reading. Yet one should keep in mind that this is a preliminary print and the actual one will be published on 1st of March.

9:00 am BST – Eurozone, PMIs for February. The European services industry has been surprising investors to the upside as services PMI readings beat almost all estimates in the last half a year. This time economists surveyed by Bloomberg call for a reading of 57.6 pts what would indicate a little downside against prior 58 pts. When it comes to manufacturing PMI the reading is expected to show a value of 59.2 pts against 59.6 pts seen last time. Keep in mind that this will be a preliminary readings just as the German ones.

9:30 am BST – UK, Claimant Count Change for January. The UK labour market has shown some weakness recently as 4 latest claimant count readings shown an increase in the number of people receiving unemployment benefits. This time markets expect another increase of 2.3k. Simultaneously the unemployment rate for January will be released and it is expected to be in line with a previous reading of 4.3%.

2:45 pm BST – US, PMIs for February. The US economy is still expanding what can be proved by the latest PMI readings. However, the services industry has been showing some weakness as of late as the PMI prints for this part of the economy has been gradually falling after reaching the value of 56.9 pts in August 2017. Market consensus points for a reading of 53.7 pts when it comes to services PMI and 55.5 pts for manufacturing PMI. However, one should keep in mind that these are preliminary prints.

3:00 pm BST – US, Existing Home Sales for January. Data from the US housing market concerning the amount of buildings sold during prior month. The US housing market is in great condition what was proved by the Friday’s housing starts and permits data. Market consensus points for a reading of 0.5% MoM against -3.6% MoM seen last time.

7:00 pm BST – US, FOMC Meeting Minutes. Investors will watch carefully at the details in the protocol from the latest FOMC meeting in order to assess the probability of the four rate hikes rather than three announced earlier. Moreover, this will be exceptionally interesting publication as the meeting took place before the recent slump in the stock markets.

Central bank speakers scheduled for today:

10:30 am BST – Riksbank’s Jansson

2:00 pm BST – Fed’s Harker

2:15 pm BST – BoE Carney, Broadbent, Haldane and Tenreyro

5:00 pm BST – Riksbank’s Ohlsson

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EURUSD has shown weakness after making double top. Will today’s Minutes provide further support for USD? Source: xStation5