Summary:

  • UK inflation figures to take the spotlight in the morning

  • Oil traders will focus on the weekly API report

  • Preliminary GDP print from Japan scheduled for release overnight

In Tuesday’s calendar we have some interesting readings planned. At first, inflation figures from the UK economy will be published giving traders insight whether BoE rhetoric is justified or not. In the evening oil traders may want to stay cautious as weekly API report will take the stage. In the late evening preliminary GDP print for Japan may spur increased volatility on the JPY tied FX pairs.

9:30 am BST – UK, CPI for January. A key data from the UK economy. The UK inflation has been accelerating at the stunning pace in the past few years picking up from 0% to around 3%. The headline reading has been hovering around 3% for some time already what is way above 2% target set by BoE. Today’s reading will be closely watched by GBP traders as during the latest meeting BoE signaled potentially quicker rate hike. Market consensus calls for a reading of 2.9% YoY against 3% seen last time and -0.6% MoM against 0.4%.

9:35 pm BST – US, API Weekly Crude Oil Stock. A weekly report on the US oil inventories that may be used by traders as a predictor ahead of the official DOE report. Last week API and DOE reports once again shown contrasting values as API reported decrease of inventories and DOE reported a major build in crude oil stocks. One should keep in mind that we have entered a period when seasonality calls for the increases in inventories.

11:50 pm BST – Japan, GDP for Q4 2017. The most relevant indicator of the state of Japanese economy. The growth of  economic activity in Japan has been quite solid as of late. The reading for Q3 signaled that the Japanese economy is expanding at the pace of 2.5% YoY. This time surveyed economists point for a reading of 0.2% QoQ against 0.6% seen last time and 1% YoY against 2.5% earlier. However, one should keep in mind that this is just a preliminary print and the actual one will be published on 7th March.

Central bank speakers scheduled for today:

1:00 pm BST – Fed’s Mester

1:30 pm BST – Bank of Italy Rossi

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 GBPJPY has been falling towards key support zone. Will today’s data deepen decline? Source: xStation5