- German ZEW the sole noteworthy release before noon
- US housing data in the limelight later in the day
- API release could be affected by Irma’s ramifications
Tuesday is relatively benign in terms of macroeconomic releases and it’s a warm-up before the Federal Reserve meeting tomorrow. Whipping through the calendar, we have few readings of note, albeit German ZEW along with US housing data are among them. At the end of the day, API will release its weekly change of oil stocks.
10:00 am BST – German ZEW: The ZEW index turned out to be quite obscure in August as the assessment of current situation remained sturdy, while expectations of economic growth slipped quite remarkably. Although, it’s not the most important soft indicator for the German economy (notice that PMI is much more useful), it could provide a catalyst for the EURUSD to potentially break an important resistance area placed at around 1.1995 (take a look at the chart embedded at the end of the article). The headline is anticipated to come in at 12.5, the release will be for September.
1:30 pm BST – US housing data: Although the FED’s meeting is by far the most significant event for this week, the housing data could be worth looking at as well. Let’s remind that the last bunch of the US data disappointed across the board as both retail sales and industrial production fell short of estimations. That said, the greenback might be more vulnerable to the release while traders may begin squaring their portfolios ahead of the FED. Finally, the US dollar has been quite muted so far given what we’ve seen on the US 10Y yield which has marked an astounding rally lately. Housing starts are anticipated to show 1175k against the prior reading at 1155k, whereas building permits should bring a 1220k pick-up compared to 1223k seen last month.
9:40 pm BST – Crude oil stocks by API: The latest string of the data related to the oil market has been quite murky due to impacts coming from the two hurricanes (Harvey and Irma). There is a possibility that this week reading will be affected as well. If so, another increase of oil stocks could be on the cards.
The EURUSD is trying to break through a crucial resistance area which could result in an extended move higher even towards a peak marked in the aftermath of the latest ECB’s meeting. Source: xStation5