Macro Brief: 'Super Wednesday Eve'

Macro 4 minutes to read

Christopher Dembik

Head of Macro Analysis

Summary:  While today's economic calendar is on the scant side, tomorrow's is chock-a-block with meetings, reports and releases from three of the world's most important policy-setting organs.


Investors were still hesitant yesterday as they looked ahead to tomorrow's “Super Wednesday” with the European Central Bank meeting, the Federal Open Market Committee minutes, the US CPI report and the extraordinary European Council on Brexit, all in the same session.

The latest batch of US corporate earnings will follow from Friday with the banking sector the first to publish figures.
 
Investors are likely to stay in wait-and-see mode as there will be not much data to focus on. All the scheduled US economic indicator releases are not very important. The only point of interest should be the International Monetary Fund’s latest World Economic Outlook update, which is due today.

No big surprises are expected here since it is well known and already priced into the market that economic activity is sharply decelerating, especially in the euro area as a consequence of low credit pulse, China’s slowdown and negative trade developments. However, investors may monitor more closely forecasts for Germany as the latest economic figures have raised fears of a more pronounced slowdown than expected – some pundits are even starting to talk about the risk of recession.

The other major event of the day will concern the oil market that is clearly oriented north. Since its lowest December point, Brent has risen more than 40%. Given the disruptions in Libya and the collapse of oil production in Venezuela due to sanctions, it is likely that oil prices will continue to rise in the short term.

Today’s Calendar (All Times GMT)

08:00 ECB, Survey of bank loans
08:00 Italy, Retail sales in February
14:00 USA, JOLTS report
22:45 Fed, Clarida’s speech

Trade responsibly
All trading carries risk. Read more. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

Saxo Bank A/S is licensed by the Danish Financial Supervisory Authority and operates in the UAE under a representative office license issued by the Central bank of the UAE.

The content and material made available on this website and the linked sites are provided by Saxo Bank A/S. It is the sole responsibility of the recipient to ascertain the terms of and comply with any local laws or regulation to which they are subject.

The UAE Representative Office of Saxo Bank A/S markets the Saxo Bank A/S trading platform and the products offered by Saxo Bank A/S.