On Wednesday, we have several British announcements coming out, but at the end of the day we feel that the Scottish fold of course will stand in the way of any significant moves based upon economic announcements. Nonetheless, the employment numbers out of the UK are in focus, and they could in fact, little bit of a minor effect on the FTSE and the GBP/USD pair. Obviously, better the number, the better it is for both of those assets. That being said however, do not be surprised at all if any of fact is a minor.
Most of the announcements during the day come out United States, with the Core CPI month over month numbers coming out, expected to be 0.2% for the announcement. This of course could have a significant effect on the stock markets in the United States, such as the NASDAQ, S&P 500, and Dow Jones Industrial Average. We believe that the S&P 500 will continue to see supportive action from below, and a stronger than anticipated CPI number can be one of the major catalyst to send this market higher and heading towards the 2010 level. Above there, the market breaks out.
Later in the day, we have the FMOC Statement. This of course will be parsed and paid much attention to, simply because people were waiting to see whether the timetable for the Federal Reserve and any interest rate hikes is being moved up. There is a certain amount of speculation that this is true, so believe that the statement will be the most important thing that we hear coming out during the day.
All things being equal, we believe that the United States will continue to lead the world as far as stocks are concerned, and the S&P 500 will be the favorite vessel to use.
