• US PPI inflation reading may give investors a hint whether consumer inflation pressure is there or not

  • Number of building permits in Canada expected to decrease

  • A bullish API reading may help OIL test recent highs

In Tuesday’s calendar we have some interesting reading planned for release yet in terms of significance they are nowhere near the ones that will be published tomorrow. Nevertheless, the US PPI inflation reading may give investors some hints ahead of tomorrow’s CPI release. Apart from that we will get some data from the Canadian housing market. In the evening weekly API report on oil inventories will take the stage.

1:30 pm BST – US, PPI Inflation for March. The change in prices of of raw or unfinished goods is closely watched by central bankers as any increase in the input prices may be partially passed onto the consumer causing consumer inflation to rise. After peaking at 3.1% YoY in November 2017 PPI inflation suddenly dropped to 2.6% YoY in the following month. Since then it has managed to climb back to 2.8% YoY and this time market consensus expects a print of 2.9% YoY and 2.6% YoY for the core measure. In MoM terms headline reading is expected to show a 0.1% increase and the core measure to come at 0.2%.

1:30 pm BST – Canada, Building Permits for February. After a sudden and significant drop of 7.3% MoM in November (revised up from -7.7%) the number of new building permits issued by the Canadian government began to rise. Two prior readings have beaten median estimate by a huge margin thus one can assume that Canadian housing market is still thriving. This time economists surveyed by Bloomberg point for a decline of 1.3% MoM against a 5.6% increase seen last time.

9:30 pm BST – API Weekly Crude Oil Stock. Last week API pointed for a huge decline in the oil inventories of 3.28M barrels. A day later official DOE report not only confirmed the decline but also signalled that the inventories contracted by 4.617M barrels. As gasoline production and inventories dropped last week the demand from oil refineries may have gone up. This may be reflected in tomorrow’s government report what would turn bearish for the oil prices as it may result in the increase of inventories.

Central bank speakers scheduled for today:

8:30 am BST – ECB’s Nouy

8:45 am BST – ECB’s Nowotny

9:30 am BST – FOMC’s Kaplan

10:30 am BST – BoE’s Haldane

4:30 pm BST – ECB’s Visco

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A strong bullish signal that may result from a significant inventories drop could help OIL test its recent highs at $70.45. A significant build could bring prices back to $67.40 handle. Source: xStation5