ECONOMIC DATA BACK IN FOCUS TUESDAY
After a quiet start to the week, the economic newswire is back in focus for Tuesday. In particular, investors will be eyeing key reports from the Eurozone and the United Kingdom, as well as a policy speech from a top US Federal Reserve policymaker.
Action begins at 05:45 GMT with a report on Swiss unemployment. The national unemployment rate is forecast to hold steady at 3.2%.
Shortly after the Swiss report, Germany will report on international trade for the month of August. The Federal Statistics Office is expected to show an August trade surplus of €20.3 billion, up from €19.5 billion the month before. Exports are projected to rise 1% on month, higher than the expected rise in imports.
Reports on industrial production from France and Italy will also make headlines over the next two hours.
Attention shifts to the United Kingdom at 08:30 GMT with reports on manufacturing production and industrial production scheduled for release. Manufacturing output is forecast to rise 1.9% in the 12 months through August following an identical increase the month before. Industrial production, which is a broader measure of factory output, is expected to gain 2.6% year-over-year.
The Office for National Statistics will also report on the goods trade balance. Britain’s trade deficit for August is expected to narrow slightly to £2.8 billion from £2.87 billion.
Reports on Greek industrial production and consumer inflation will round out the European release schedule.
In North America, the Canadian government will report on housing starts and building permits at 12:15 GMT and 12:30 GMT, respectively. The reports will be used to gauge the health of the Canadian housing market.
In the United States, Federal Open Market Committee (FOMC) member Neel Kashkari will deliver a speech at 14:00 GMT.
The Canadian dollar strengthened against its US counterpart on Monday, a trend that continued well into Tuesday’s session. The USD/CAD was last down 0.2% at 1.2523. The pair continues to trade above a key technical support, but is locked in a relatively neutral range. A recovery attempt north of 1.2770 is needed to ensure further bullish momentum for the pair in the weeks ahead.
The euro also capitalized on broad dollar weakness at the start of the week. The EUR/USD was up another 0.2% at 1.1768 through Tuesday’s Asian session. Despite the pair’s recent struggles, the outlook remains generally favourable so long as prices hold above 1.1716. Those levels appear to be secured at the time of writing.
The British pound maintained its rangebound state against the dollar on Tuesday, with prices edging up slightly toward the 1.3160 range. The bulls are targeting the 1.32 level, although worries over Brexit could dampen cable’s near-term outlook.