Summary:

  • J. Yellen speech should be the most worth looking at
  • New home sales and consumer confidence from the US economy
  • API will deliver its weekly update on a change in oil inventories

Tuesday is bound to be dominated by FED speakers with Chair J. Yellen being a cherry on top. She is expected to speak about inflation, uncertainty and monetary policy – the hottest topics from financial markets point of view. Besides, two noteworthy macroeconomic releases from the US are on the agenda. Finally, the API will deliver its weekly update on oil stocks. Notice oil prices surged yesterday, hence they might be vulnerable to the data today.

3:00 pm BST – US new home sales and consumer confidence: Investors on the FX market are likely to wait for Janet Yellen today but there will be two quite important readings from the US economy. Firstly, new home sales are anticipated to show 585k in August against the prior print at 571k. It’s worth recalling that existing home sales slowed down quite markedly closing a divergence with the 30Y mortgage rate. If today’s reading is to be in line with the last week data, there is a possibility to a more sluggish release closer to 550k. Moreover, we’ll know consumer confidence provided by Conference Board. There were two solid prints since June and we are just shy of an all-time high. The consensus points to a decline from 122.9 to 120 in September.

5:45 pm BST – J.Yellen speech: Chair of the Federal Reserve will deliver her speech about inflation, uncertainty and monetary policy at the NABE conference in Cleveland. After her appearance the Q&A session will take place, hence some awkward questions are possible to be asked. You can find out more on this event reading our weekly calendar.

9:40 pm BST – Crude oil stocks by API: A few recent readings have been distorted by the hurricanes and it’s possible that some effects will be included today as well. If so, another build in oil should be expected. The last week saw an increase by 1.4 million barrels, it was vastly exceeded by the DoE which reported a threefold larger increase.

On top of that, there are several speeches from other central bankers:

  • 8:00 am BST – ECB’s Rimsevics
  • 10:00 am BST – ECB’s Liikanen
  • 1:00 pm BST – ECB’s Praet
  • 2:30 pm BST – FED’s Mester
  • 3:30 pm BST – FED’s Brainard
  • 4:30 pm BST – FED’s Bostic

link do file download linkThe GBPUSD is hovering around an important support area at 1.3450. A possible breakout could give a rise to an extended leg lower even below 1.32. Source: xStation5