Fundamental Analysis

Data Deluge Begins On Wednesday

Typography

Investors can expect to see a deluge of economic data on Wednesday, with highlights from both sides of the Atlantic. These data points are expected to fuel everything from stocks to currencies in mid-week trading.

Action begins at 07:45 GMT with French inflation data. The Eurozone's second-largest economy is expected to show annual CPI of 1.2% in October.

Shifting gears to the United Kingdom, the Office for National Statistics will report the latest jobs numbers at 09:30 GMT. The claimant count change is expected to rise by 2,300 for the month of October. The unemployment rate is expected to hold steady at 4.3% annually in the three months through September. Meanwhile, average hourly earnings including bonus are projected to rise 2.1% annually in July-September.

Later in the session, the European Commission's statistical agency will release the latest trade balance for the month of September. The Eurozone trade surplus is forecast to edge down to €21.4 billion from €21.6 billion.

In North America, government economists will release a pair of high-profile reports at 13:30 GMT, including retail sales and the consumer price index (CPI).

Receipts at retail stores are forecast to rise 2% annually in October, following a 1.6% increase the month before.

In terms of CPI, inflation is expected to climb 2% annually in October, following a 2.2% gain in September. Excluding food and energy, the CPI indicator is expected to come in at 1.7%.

In a separate release on Wednesday, the Federal Reserve Bank of New York will issue its Empire State Manufacturing Index for the month of November. The report is expected to show a drop of 4.2 points to 26.0.

In terms of monetary policy, Federal Reserve official Charles Evans will deliver a speech at 08:00 GMT. The Bank of England's Andrew Haldane and Peter Praet of the European Central Bank (ECB) are also scheduled to deliver remarks throughout the day.

EUR/USD

The euro is trading at fresh two-week highs against the dollar, with EUR/USD briefly trading above 1.1800 on Tuesday. The pair was last seen hovering just below that psychological level. The 14 November high of 1.1805 remains the key resistance barrier. On the flipside, support is located at 1.1765.

GBP/USD

Cable regained momentum on Tuesday, climbing to a session high of 1.3176. GBP/USD gave back most of its gains at the start of Wednesday, with the pair trading around 1.3138. That represents a decline of roughly 0.2%. Economic data will largely dictate the direction of the market in the short term.

USD/JPY

The USD/JPY declined on Wednesday, as the dollar weakened. The pair was last down 0.2% at 113.18. The bulls control the market at 114.00. Immediate support is located at the low 113.00 region.

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