Summary:

  • CPI from UK to take the spotlight in the morning

  • SNB President Jordan to deliver a speech in the afternoon

  • Oil traders may want to stay cautious ahead of weekly API report

Tuesday calendar looks promising when it comes to the data from Europe. A range of the European countries are about to release their inflation figures throughout the morning with UK data being the most interesting one. Germany CPI data has been released already and it came out at 1.7% y/y what was in line with the forecasts. Oil traders may want to look out for a hints ahead of official government figures in today’s API report.

9:30 BST – UK, Inflation data for December. Inflation is one of the most important measures central banks take into account while deciding on the level of interest rates. As of late UK inflation was doing really good as it has reached the level of 3.1% in 2017. This is well above the target set at 2%. Therefore if the CPI figures continue going in line with their current trend Bank of England will surely have some space for next rate hikes. The market consensus calls for a print of 3% that would implicate decline against 3.1% seen before.

13:30 – US, NY Empire State Manufacturing Index for January. Index that rates relative level of business conditions in the state of New York. All prints above 0 would indicate that the conditions are improving. We have not seen a release below 0 points since May 2017. This time surveyed economists point out for a reading of 19 points and that would be an increase against 18 points seen in December.

21:30 – API Weekly Crude Oil Stocks. Weekly API report may support ongoing rally on the oil market in case it shows another decline of the inventories. Oil traders should pay attention to this print as it can be used as a hint ahead of official government report scheduled for release two days later.

Central bank speakers scheduled for today:

11:00 BST ECB’s Rimsevics

17:00 BST SNB President Jordanlink do file download link

GBPUSD is on the highest levels since the Brexit vote. Will UK inflation support pound? Source: xStation5