March 14 – Economic Events Outlook & ECB In View

Posted Wednesday, March 14, 2018 by
Arslan Butt • 2 min read

Good morning, fellas.

The fundamental side is loaded with a number of high impact events, with ECB President Draghi’s speech topping the list. The financial markets are likely to remain highly volatile during the London and US sessions. Take a look at these events.

Watchlist – Top Economic Events

Chinese Yuan – CNY

Industrial Production y/y – The Chinese industrial production came out significantly higher than expected. The figure soared by 7.2%, a full percentage point above the expected of 6.2% beforehand.

As we know, there’s a positive correlation between the Australian dollar and Chinese economic events due to their business relationships. Consequently, the Australian Dollar also got a lift from upbeat Chinese economic figures.

Eurozone – EUR

ECB President Draghi is due to speak at the ECB conference hosted by the Institute for Monetary and Financial Stability, in Frankfurt at 9:00 (GMT).

Earlier, the ECB’s President Draghi managed to drag the Euro with less than a hawkish statement. As he is speaking at the Institute for Monetary and Financial Stability, he may refer to monetary policy and any further dovish commentary is likely to pin the Euro back.

US Dollar – USD

Retail Sales m/m and PPI m/m will be worth monitoring at 13:30 (GMT). The retail sales are forecasted to grow by 0.3% vs. -0.3% previously, whereas the PPI figure is expected to drop to 0.2% from 0.4%. Since both of the economic events are arriving at 13:30 (GMT), the idea is to trade the market only if the data is one-sided, either positive or negative.

Crude Oil Inventories – The EIA will be releasing the stockpile report at 15:30 (GMT). The figures usually show a change in the number of barrels of crude oil held in inventory by commercial firms during the past week.

For now, the economists are expecting 2.2 million barrels in inventories vs. 2.4 million beforehand. Considering the forecast, traders are likely to trade Crude Oil with the bearish sentiment.

New Zealand – NZD

GDP q/q – It’s one of the leading indicators of economic health and I would love to monitor it at 22:45 (GMT). In 2018, it will be its first GDP release. The New Zealand’s economy is dependent on trade and the recent tax talk had a notable influence on the currency. However, the dataset is expected to grow by 0.8% in Q4 after a 0.6% growth in Q3.

Summing up, the market is likely to remain quiet before the news release. Later, we will have a bundle of opportunities to catch during the US session, so save your shots and use them at the right time.

Good luck and stay tuned for more updates.

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