Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Traders Brace For Inflation Tuesday

Published 10/17/2017, 04:14 AM
Updated 02/20/2024, 03:00 AM

The global financial markets will be drawn to headline inflation data on Tuesday, with final reports expected from the Eurozone and United Kingdom. A survey of German investor sentiment will also make headlines after a quiet start to the week.


Action begins at 08:00 GMT with a report on Italian trade. The Eurozone’s third-largest economy is expected to show an August trade surplus of €4.23 billion, down from €6.56 billion the month before.


A deluge of British inflation data will make its way through the financial markets at 08:30 GMT, including the retail price index, the producer price index and the consumer price index. Consumer prices are forecast to rise 3% annually in September, while core prices are projected to rise 2.8% over the same period.


Eurostat will produce euro-wide CPI data at 10:00 GMT. Annual CPI in the currency region is forecast to rise 1.5%. Core inflation is projected to come in at 1.1%, according to estimates.


About an hour earlier, the ZEW Institute will release its economic sentiment index for German and Eurozone investors. Confidence among investors is expected to rise in both jurisdictions.


Three central bankers will also deliver speeches on Tuesday, beginning at 08:00 GMT with Vitor Constancio, the Vice President of the European Central Bank (ECB). The ECB’s Peter Praet, who has served on the Executive Board since 2011, will also deliver a speech at 09:30 GMT.


Finally, Bank of England (BOE) Governor Mark Carney will deliver remarks at 10:15 GMT.

EUR/USD

Europe’s common currency resumed its descent on Monday, falling back below 1.1800 US. The EUR/USD could receive a boost from Eurozone data on Tuesday. An upward correction depends largely on the pair’s ability to reclaim the 1.1810 level. This would spark a rally back toward the mid-1.18 region.
EUR/USD Chart

GBP/USD

The British pound steadied on Monday, trading in the mid-1.32 region against the dollar. Cable has been stuck in a 100-pip range between 1.3250 and 1.3350 for the past week, as investors await fresh details concerning Brexit and the BOE. Rangebound is the name of the game for now. With neither the pound nor the greenback showing signs of pulling ahead.
GBP/USD Chart

USD/JPY

The dollar is off to a solid start against the yen this week, with the USD/JPY climbing back above 112.00 on Monday. The pair continues to hold that critical line, although upside momentum appears to be limited at time of writing. Looking at the rest of the week, the yen may carry favour with investors ahead of Japanese general election on 22 October. Prime Minister Shinzo Abe is expected to deliver a solid performance in his bid for re-election. For investors, this likely means the continuation of ultra-loose monetary policy.
USD/JPY Chart

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.