• Manufacturing PMI readings from the world’s major economies to be released throughout the day

  • Second day of new Fed chair hearings in Congress

  • Important US inflation data scheduled for release in the afternoon

Today is the second day of new Fed chair hearings in the Congress. Tuesday’s testimony turned out to be rather subdued. However, we have seen some hawkish remarks that spurred increased volatility on the markets. Apart from that, manufacturing PMI prints are about to be released today for a wide spectrum of world’s economies. Moreover, PCE inflation from the US will take the stage in the early afternoon.

9:00 am BST – EMU, Manufacturing PMIs for February. Last week’s preliminary PMI prints showed a deteriorating condition in the manufacturing sector of the EMU economies. However, some countries like for example Italy surprised investors with a better-than-expected preliminary print. At 9:00 am manufacturing PMI print for Eurozone as a whole will be released and it is expected to slide to 58.5 pts. Readings from the EMU economies will be released in an one hour span ahead of the Bloc’s print.

9:30 am BST – UK, Manufacturing PMI for February. The UK manufacturing sector has been constantly expanding since mid-2016. The situation seems stable for now yet it may change when the Brexit procedure will be implemented as negotiations failed to provide a draft for the UK trade deals with the bloc. Market consensus points for a downside to 55 pts from 55.3 pts seen last month.

10:00 am BST – Eurozone, Unemployment rate for January. The unemployment in the Eurozone has been gradually falling since reaching peak in the late 2013. This time market consensus points for another tightening of the labour market with unemployment rate in January sliding to 8.6% from 8.7% seen last time. This reading may be closely watched by the investors as Mario Draghi said that the improving situation on the labour market may spur inflationary pressure.

1:30 pm BST – US, PCE inflation for January. US PCE inflation data is crucial for the USD traders as this is a measure that Fed takes into account in the process of making its monetary decisions. After CPI print beat forecasts heralding slow down this measure may perform similar. Economists surveyed by Bloomberg call for a reading of 1.5% YoY for the core measure what would be in line with the previous print.

3:00 pm BST – US, Jerome Powell testifies to Congress. Jerome Powell’s testimony on Tuesday in Congress shaked the markets a little. The testimony itself did not proved to be a major turnaround yet we have seen some hawkish remarks during the question session sending greenback higher.. Will today’s hearings result in the same market reaction?

3:00 pm BST – US, ISM Manufacturing PMI for February. After a dip to 48 pts in the December 2016 US manufacturing sector condition measured by the ISM print has been constantly improving reaching peak in September 2017. Later on we have seen a little deterioration yet the values published are still far from the ones indicating shrinking of the sector. This time market consensus points for a reading of 58.7 pts what would be a minor downside against 59.1 pts seen earlier.

Central bank speakers scheduled for today:

10:30 am BST – ECB’s Nouy

12:10 pm BST – ECB’s Lane

4:00 pm BST – Fed’s Dudley

link do file download link

EURUSD retreated towards neckline of the double top formation at 1.22 handle. Will today’s data pack turn out to be more supportive for euro? Source: xStation5