• Germany and Spain inflation figures to be released in the morning

  • Jerome Powell testimony to Congress

  • CB Consumer Confidence expected to show a pick-up

Tuesday has been awaited by the investors as Jerome Powell is about to make his first major appearance as the head of the Federal Reserve. Markets will weigh his testimony trying to assess whether new president will continue Yellen’s policy or turn to be market shaker. Apart from that we will get preliminary CPI prints from some European economies and a pack of data from the US.

1:00 pm BST – Germany, CPI for February. The German inflation has steadied in the range of 1.6% to 1.8% YoY after reaching 2.2% YoY in March 2017. As Germany is the biggest EU economy and the inflation is one of the key factors for the ECB in making monetary decisions reading will be closly watched by the investors. Economists surveyed by Bloomberg point for a slowdown to 1.5% YoY from 1.6% seen last time. One should keep in mind that this is a preliminary release and the actual value will be published on 14th of March.

1:30 pm BST – US, Durable Goods Orders for January. Reading measuring the change in the value of orders for the long lasting goods. A positive reading indicates expanding manufacturing activity in the economy. We have not seen a negative reading since May 2017. This time market consensus calls for a decrease of 2% MoM against a pick-up of 2.8% MoM seen last time. When it comes to core gauge that exclude transportation items economists expect an increase of 0.4% MoM against 0.7% seen last time.

3:00 pm BST – Jerome Powell testifies to House Financial Services Committee. The first one of the two testimonies Jerome Powell will make to the Congress. The second one is scheduled for Thursday. Powell will address Fed’s semiannual report. It is important to note that the text of testimony will be released 90 minutes earlier. Investors will focus on what is the stance of the new Fed chair and whether he can handle his emotions and not sound too hawkish or too dovish.

3:00 pm BST – US, CB Consumer Confidence for February. After rebounding in the mid-2009 the level of  consumers’ confidence in the US economy has been constantly improving.This time market consensus points for a reading of 126.2 pts against 125.4 pts seen last month. Soft indicators including CB Consumer Confidence are closely watched by the investors as usually they are the first ones to signal potential economic slowdown.

Central speakers scheduled for today:

9:00 am BST – BoE’s Woods

9:00 am BST – Riksbank’s Jochnick

10:00 am BST – Bundesbank’s Weidmann

5:00 pm BST – Riksbank’s Ohlsson

8:45 pm BST – RBNZ Deputy Governor Bascand

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 USD still struggles to pare recent losses. Will Jerome Powell provide boost for the greenback? Source: xStation5