Summary:

• Another data from the US economy to  be released in the early afternoon

• Oil traders will closely watch US output figures in the DOE report

• New Zealand’s economy is expected to accelerate in the Q4 2017

On Wednesday investors will be served with another portion of data from the US economy. However, the most important reading of the week, CPI inflation, has been already released thus the volatility spurred by the retail sales and PPI data may be subdued. Later on weekly DOE report on the US oil inventories will take the stage while in the late evening New Zealand GDP reading will be released. Euro traders may want to stay cautious throughout the day as a wide array of central bankers from ECB will deliver their speeches today. 

12:30 pm BST – US, Retail Sales and PPI for February. Another pieces of data from the US economy scheduled for release this week. After yesterday’s CPI inflation print came inline with forecasts investors attention will turn to the retail sales and PPI inflation readings as the former is an important indicator of consumer spending while the latter may signal exerting of inflationary pressure. However, one should keep in mind that this readings are significantly less important than yesterday’s as they play a minor role in the Fed decision making. Surveyed economists point for a reading of 0.3% MoM for both, the headline retail sales reading and the core gauge. When it comes to the PPI inflation markets expect a reading of 2.8% YoY for the headline reading and 2.5% YoY for the core one.

2:30 pm BST – US, Crude Oil Inventories. API report has shown a 1.156M increase in oil inventories against 1.5M expected yesterday. However, despite this bullish result oil prices have traded lower at the end of a day. When it comes to today’s DOE report investors will pay attention not only to the level of inventories but also to US output as it has been on the rise as of late. Market consensus points for an increase of 2.398M in the level of inventories against 2.408M seen last week.

9:45 pm BST – New Zealand, GDP for Q4 2017. New Zealand has shown strength quickly recovering from depression to expansion in the post-crisis era. However, after peaking in Q4 2014 its GDP growth has somewhat deteriorated slowing to 2.7% YoY in the previous quarter. Yet economists surveyed by Bloomberg stay optimistic about New Zealand’s economy performance in the Q4 2017 and signal a reading of 3.1% YoY and 0.8% QoQ (previously 0.6% QoQ).

Central bank speakers scheduled for today:

8:00 am BST – ECB President Draghi

8:45 am BST – ECB’s Praet and Angeloni

10:45 am BST – ECB Vice President Constancio

2:30 pm BST – BoF Governor Villeroy de Galhau

4:15 pm BST – ECB’s Coeure

 NZDUSD has rebounded from the 38.2% Fibo level marching towards the double top at 0.7435. Will today’s GDP print help NZD move closer to the recent highs? Source: xStation5