US GDP To Release Headlines Mid-Week
Octa | Mar 28, 2018 02:31AM ET
A steady stream of European and US economic data will make its way through the financial markets on Wednesday, culminating in Washington’s revised Q4 GDP report.
The European session kicks off at 06:00 GMT with the GfK institute’s monthly consumer confidence survey for Germany. The April report is expected to deviate very little from the previous month’s tally.
Over the next two hours, traders can expect data on Spanish retail sales, Italian industrial orders and Swiss consumer confidence. At 10:00 GMT, the Confederation of Independent Business (CBI) in the UK will report on the distributed trades survey for the month of March.
Shifting gears to North America, the Commerce Department’s revised US GDP report will be released at 12:30 GMT. The world’s largest economy is forecast to have expanded 2.7% annually in the fourth quarter, according to a median estimate of economists. The core personal consumption expenditure (PCE) index is forecast to rise 1.9% during the quarter.
The core PCE index is the Federal Reserve’s preferred measure of inflation. The central bank targets inflation at 2% and is more likely to raise interest rates when core PCE meets or exceeds that target.
Commerce economists will also report on Washington’s goods trade balance at 12:30 GMT. The February deficit is projected to narrow slightly to $72.5 billion from $74.4 billion the previous month.
A report on wholesale inventories, which is expected to show monthly growth of 0.4% in February, is also scheduled for release at 12:30 GMT.
The National Association of Realtors (NAR) will present its pending home sales index at 14:00 GMT. The forward-looking indicator is forecast to fall 0.2% in February after slumping 1.7% the month before.
Meanwhile, oil traders will be keeping tabs on the weekly crude inventory report courtesy of the US Energy Information Administration (EIA). Official EIA data is expected to show a weekly build up of 1.2 million barrels for the period ended 23 March.
EUR/USD
Europe’s common currency rallied to a high of 1.2469 US on Tuesday before giving back around 50 pips to settle in the low 1.2400s. EUR/USD faces short-term support at the psychological 1.2400 level. On the opposite side of the spectrum, the new March high of 1.2475 is the next target.
GBP/USD
Like other dollar pairs, cable experienced a breakdown on Tuesday, as prices fell more than 100 pips to break below 1.4100. Cable would recover swiftly in the coming hours but failed to reclaim the Tuesday high near 1.4240. That intraday peak remains the short-term target for the bulls.
Get The News You Want
USD/JPY
The USD/JPY exchange rate has been gradually recovering from Friday’s multiyear low. However, at just 105.50, the pair remains firmly entrenched in negative territory. The pair is currently trading above the key 105.40 level, where it has found momentary support.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.