Summary:

  • UK manufacturing PMI seems to be the most important print to watch before noon
  • Crude oil stocks by API as usual should serve as a predictor ahead of the DoE release
  • Two Federal Reserve speakers to watch during the day

European stock markets are back after the extended weekend due to Easter therefore liquidity conditions are expected to improve which may result in less disorderly price movements. Final PMIs coming from European economies should dominate the day but major attention ought to be paid to the UK manufacturing release. On top of that oil traders are going to find something for themselves as the API is scheduled to unveil its weekly calculations on oil inventories.

9:30 am BST – UK manufacturing PMI: The latest Bank of England meeting turned out to be GBP negative after all. However, the BoE hinted at a possible rate hike which might come in as soon as the next month which should act in favour of the pound over the next couple of weeks. As for now the interest rate market assigns less than 70% for a rate increase in May therefore there is still some room left to price in the move, and on that account the British pound may benefit as well. The latest streak of European PMIs illustrated further deceleration of growth momentum thus the similar story might be witnessed in case of the UK release as well. The consensus indicates 54.7 points in March against the prior reading at 55.2 points.

9:40 pm BST – Oil stocks by API: Admittedly, the most recent API print showed a massive build in inventories it was not corroborated by the governmental report thereafter. Oil prices made a major retreat yesterday along with the US stock market hence they may be a bit less vulnerable to today’s reading. Finally let us remind that the count of oil rigs dwindled during the last week by 6 to 798 according to the Baker Hughes report.

Central bank speakers scheduled for today:

  • 2:30 pm BST – Fed’s Kashkari
  • 9:30 pm BST – Fed’s Brainard

link do file download linkWTI oil prices tumbled on Monday following a severe sell-off on Wall Street. Nevertheless bulls were able to stay above a local support line thus a technical rebound might take place. Source: xStation5